Are Caring Senior Service franchisees subject to non-competition covenants during the term of the franchise?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not make any sales or provide services to clients located outside of your Protected 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 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. If that area is subsequently sold to a new franchisee in the System, 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. At any time during the term of this Agreement, may request
from you, and you must provide us with, a list of these clients including the information we specify. Any noncompliance with the terms of this paragraph is a material breach under this Agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 39–45)
What This Means (2025 FDD)
According to the 2025 Caring Senior Service FDD, franchisees are restricted regarding where they can solicit clients and provide services. Caring Senior Service grants franchisees a territory in which they are allowed to operate. The agreement states that franchisees may not make any sales or provide services to clients located outside of their Protected Territory.
However, there are a couple of exceptions to this rule. Franchisees can provide services outside of their territory if the client is located in an area where there is not another Caring Senior Service Business in operation. Also, franchisees can provide services outside of their territory if they have the other franchisee's permission to provide services to clients in its territory and they have provided Caring Senior Service a copy of such permission in writing prior to providing services to such franchisee's clients.
Caring Senior Service retains the right to modify these arrangements. If the area outside of a franchisee's territory is subsequently sold to a new franchisee in the System, Caring Senior Service may require that the original franchisee cease servicing the clients in that area and transfer all client information to the new franchisee. However, Caring Senior Service may, in its sole discretion, allow the original franchisee to continue to provide services to some or all of its established clients in the area sold to the new franchisee.