What business activities are Caring Senior Service prohibited from engaging in?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
You may sell the Approved Services and Products to clients who live within your Territory. You may not engage in any promotional activities or sell any products or services, whether directly or indirectly, through or on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system (collectively, the "Electronic Media"); through catalogs or other mail order devices sent or directed to clients or prospective clients located anywhere; or by telecopy or other telephonic or electronic communications, including toll-free numbers, directed to or received from clients or prospective clients located anywhere. While you may place advertisements in printed media and on television and radio that are targeted to clients and prospective clients located within your Territory, you will not be deemed to be in violation of the Franchise Agreement if those advertisements, because of the natural circulation of the printed media or reach of television and radio, are viewed by prospective clients outside of your Territory.
You may not make any sales or provide services to clients located outside of your Territory, unless the client is located in an area where there is not another Caring Senior Service® Business in operation or you
have the other franchisee's written permission to provide services to clients in its territory and you have provided us a copy of such permission in writing prior to providing services to such franchisee's clients. Your failure to abide by these client service restrictions is a material event of default under the Franchise Agreement. We may, however, permit you to cure this default if: (1) you remit 40% of Gross Billings related to the unauthorized client to the franchisee in whose Territory the client is located, and (2) you transfer the client to such franchisee within three days of your receipt from notice from us or in accordance with applicable law, whichever is later. If that area is subsequently sold to a new franchisee, we may require that you cease servicing the clients in that area and that you transfer all client information to the new franchisee. We may, however, in our sole discretion, allow you to continue to provide services to some or all of your established clients in the area sold to the new franchisee.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, franchisees face specific restrictions on how and where they can promote and sell their services. A franchisee is restricted from engaging in promotional activities or selling any products or services through the Internet, the World Wide Web, or any similar electronic delivery system. They also cannot use catalogs or other mail order devices, or telephonic or electronic communications directed to clients or prospective clients located anywhere. This means that Caring Senior Service franchisees must avoid these channels for direct sales and marketing. However, franchisees can place advertisements in printed media, television, and radio targeted to clients within their territory, even if those advertisements are incidentally viewed outside their territory due to the media's natural reach.
Caring Senior Service franchisees are also restricted from making sales or providing services to clients located outside of their designated territory. An exception exists if the client is in an area without another Caring Senior Service business in operation, or if the franchisee obtains written permission from the other franchisee whose territory the client resides in. This permission must also be provided to Caring Senior Service in writing before services are rendered. Failure to comply with these client service restrictions constitutes a default under the Franchise Agreement.
If a Caring Senior Service franchisee violates the territory restriction, they may be able to remedy the situation by remitting 40% of the gross billings related to the unauthorized client to the franchisee in whose territory the client is located. Additionally, the franchisee must transfer the client to the correct franchisee within three days of receiving notice from Caring Senior Service or as required by applicable law, whichever is later. If the area is subsequently sold to a new franchisee, Caring Senior Service may require the original franchisee to cease servicing clients in that area and transfer all client information to the new franchisee, although Caring Senior Service retains the discretion to allow the original franchisee to continue serving established clients in the sold area.