Is the territory granted in the Caring Senior Service Franchise Agreement exclusive?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement grants you the right to operate your Franchised Business only at the Approved Location. You will operate the Franchised Business at the Approved Location in protected territory covering a geographic area designated or described in Exhibit A to the Franchise Agreement ("Territory"). We will mutually agree on a Territory prior to your execution of the Franchise Agreement. A typical Territory is likely to include a population of approximately 200,000 where at least 10% of the population will consist of people age 65 or older, as calculated by our designated mapping software, and may be described in terms of street boundaries, town boundaries, contiguous zip codes, or drawn on a map that is included in Exhibit A to the Franchise Agreement. Except as described above, you will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. The Franchise Agreement does not provide you with a right of first refusal to acquire additional franchises; however you may reserve additional territories if you enter into our Development Addendum which is described below.
You may relocate your Franchised Business only with our prior written approval, and your new location must be within your Territory. Our approval will be based upon the same factors we use for your original Approved Location. Our approval will not be unreasonably withheld. Our approval should not be construed as an assurance or guaranty that the new site will be successful.
Except for the Territory that you are granted during the term of the Franchise Agreement, we and affiliates have the right:
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- To establish and operate, and grant rights to other franchise owners to establish and operate, Caring Senior Service® Businesses or similar businesses at any location outside of your Territory and on any terms and conditions we deem appropriate;
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- To sell services and products identical or similar to, or dissimilar from, those your Franchised Business sells, whether identified by the Proprietary Marks or other trademarks or service marks through alternative distribution channels, wherever located or operating. The term "alternative distribution channels" includes the Internet, catalog sales, telemarketing or other direct marketing sales;
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- To purchase or otherwise acquire the assets or controlling ownership of one or more businesses identical or similar to your Franchised Business, some or all of which might be located anywhere, including within your Territory;
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- To be acquired; and
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- To engage in any other business activities not expressly prohibited by the Franchise Agreement, anywhere.
You may sell the Approved Services and Products to clients who live within your Territory.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the standard Franchise Agreement does not grant an exclusive territory. A franchisee will operate their Caring Senior Service business at an approved location within a protected territory, which is defined in Exhibit A of the Franchise Agreement. This territory is typically a geographic area with a population of approximately 200,000, where at least 10% of the population is age 65 or older. The territory may be described using street boundaries, town boundaries, contiguous zip codes, or a map.
However, the FDD states that franchisees may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Caring Senior Service. Caring Senior Service and its affiliates retain the right to establish and operate similar businesses outside the franchisee's territory, sell similar services through alternative channels like the Internet, acquire competing businesses, and engage in other business activities not expressly prohibited in the Franchise Agreement.
Caring Senior Service offers a Development Addendum that allows franchisees to reserve additional territories for future purchase. During the term of the Development Addendum, Caring Senior Service will not develop or grant to anyone else the right to develop a Franchised Business within the Development Territories. However, even with the Development Addendum, franchisees may still face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Caring Senior Service.
The FDD also indicates that Caring Senior Service may modify a franchisee's territory or territorial rights, including revoking exclusivity, if the franchisee fails to meet minimum performance criteria. To maintain rights to the territory and the Franchised Business, a franchisee must meet minimum performance criteria. The Gross Billings Target starts at $5,000 for each two-week billing period during months 7 through 9 and increases to $20,000 by month 25 through the end of the term.