Does the non-compete agreement with Caring Senior Service extend to e-commerce businesses?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
r Business. You shall be prohibited from engaging in any promotional activities or selling 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 tollfree numbers, directed to or received from clients or prospective clients located anywhere, without our consent. While you may place advertisements in printed media and on television and radio that are targeted to clients and prospective clients located within the Protected Territory, you will not be deemed to be in violation of this 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 the Protected Territory.
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.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, franchisees face restrictions on engaging in promotional activities or selling through electronic media without the franchisor's consent. Specifically, franchisees are prohibited from selling products or services directly or indirectly through the Internet, the World Wide Web, or similar electronic delivery systems without prior approval from Caring Senior Service. This includes restrictions on catalogs, mail order, telecopy, and other telephonic or electronic communications directed to clients or prospective clients.
However, franchisees are permitted to place advertisements in printed media, television, and radio targeted to clients within their protected territory. The agreement clarifies that if these advertisements reach prospective clients outside the protected territory due to the natural circulation of the media, it will not be considered a violation of the agreement.
Caring Senior Service also retains the right to engage in electronic commerce through any Internet, World Wide Web, or other computer network site. If Caring Senior Service receives requests for services within a franchisee's protected territory through these channels, the request will first be offered to the franchisee. If the franchisee declines or is unable to fulfill the request, Caring Senior Service, its affiliates, or a designated third party can fulfill the order without any compensation to the franchisee.