Caring Senior Service
Caring Senior Service offers non-medical home assistance to seniors and disabled adults. Known for reliable in-home care, it operates in the eldercare services sector.
Caring Senior Service franchise FAQ
How much does it cost to open one — the total initial investment?
The total investment necessary to begin operation of a Caring Senior Service® franchise ranges from $99,997 to $153,994, which includes $49,000 that must be paid to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is $49,000 [p.69], unless this amount is otherwise amended in Exhibit A of the Agreement. This fee is non-refundable upon execution of the Agreement [p.11].
What are the ongoing royalty and advertising fees?
The franchisee must pay a royalty fee of 5% of their gross billings for the use of the franchised unique and proprietary management and business method. Additionally, there is an obligation to make minimum royalty or advertising fund payments regardless of sales levels, with non-payment potentially leading to termination of the franchise agreement [p.170, p.4].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts. The provided FDD does not detail the length of the initial franchise agreement or the terms for renewal beyond stating that a new Franchise Agreement will be given at least 90 days before the renewal term begins [p.67] and that there are conditions under which the franchise can be refused renewal [p.67].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can generally not freely sell or transfer your franchise without good cause as determined by the franchisor. Good cause includes but is not limited to specific reasons such as a release, assignment, novation, waiver, or estoppel that would deprive you of rights and protections provided under Michigan's Franchise Investment Law [p.5]. The franchisor may also have a right of first refusal in such situations [p.5].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement for good cause, which includes your failure to comply with any lawful provision of the Franchise Agreement and not curing such failure after being given written notice and a reasonable opportunity to cure, which cannot exceed 30 days [p.5]. This isn't specified in the excerpts for other grounds.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You are granted a protected territory but not an exclusive one [p.33]. The territory covers a geographic area with specific demographic requirements and may include population centers like contiguous zip codes or street boundaries as defined by Exhibit A to the Franchise Agreement. However, you may face competition from other franchisees, company-owned outlets, or competitive brands within this territory [p.33].
What training and ongoing support does the franchisor provide?
The franchisor provides a mandatory training program for the franchisee and up to three additional trainees (for a total of four people) that is included in the initial franchise fee. This training is offered remotely and does not require travel to any specific location [p.75]. Additionally, ongoing support includes marketing and advertising, training, bookkeeping, and quality control services, all of which are incurred on behalf of the franchisee and recovered through monthly billings as per the franchise agreement [p.170].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor can provide actual records of an existing outlet if purchased, but generally does not make representations about a franchisee's future financial performance or past performance of company-owned or franchised outlets. Financial performance information must have a reasonable basis and can only be supplemented under specific conditions as outlined in the FDD [p.45].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering only the Approved Services and Products as specified by the franchisor within your Territory [p.64]. You may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3].