Does the agreement specify any geographic limits on where the Caring Transitions franchise can operate?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as permitted by Sections 1.4 and 1.5 below, Franchisee may not provide or sell products or services in a franchise territory granted to another franchisee of the System.
The territorial protection granted under this Section does not extend to the solicitation of employees, and nothing in this agreement prohibits other franchisees of Franchisor from advertising for and soliciting employees in Franchisee's Territory.
- 1.10 Marketing and Solicitation Restrictions.
Except as permitted by section 1.4, 1.5, or 8.6, Franchisee shall not directly or indirectly: (i) engage in advertising, marketing, or promotional activities in, or that are directed or targeted primarily to, the protected territory of another Caring Transitions franchisee; or (ii) conduct in-person assessments, provide Permitted Products and Services, or provide products and services that compete with Permitted Products and Services, in the protected territory of any other Caring Transitions franchisee.
- (a) Except as otherwise approved in writing by Franchisor, Franchisee shall not, for a continuous and uninterrupted period commencing upon the expiration, termination, or transfer of this Agreement (regardless of the cause for termination) and continuing for two (2) years thereafter, directly or indirectly, for itself or through, on behalf of, or in conjunction with any person (including a spouse, child, parent, or sibling of Franchisee or of a principal of Franchisee), partnership, limited liability company, corporation, or other entity:
- (1) own, maintain, operate, engage in, or have any interest in any business offering moving management, estate liquidation or household liquidation services, or any other services that had been offered by the franchised business, that is or is intended to be located or which operates in or within 15 miles of the geographical boundaries of Franchisee's Territory or within 15 miles of the geographical boundaries any Caring Transitions franchisee's Territory; or
- (2) promote, sell, procure, provide or solicit referrals for, or offer to sell, procure, provide or solicit referrals for, moving management, estate liquidation or household liquidation services, any Permitted Products and Services, or any other services that are offered in the franchised business, from any Shared Referral Sources (as defined in Section 8.7 above) or in or within 15 miles of the geographical boundaries of
Franchisee's Territory or in or within 15 miles of any other Caring Transitions franchisee's Territory.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to the 2025 Caring Transitions Franchise Disclosure Document, the franchise agreement does include geographic limits on where a franchisee can operate. A Caring Transitions franchisee is generally restricted from engaging in advertising, marketing, or promotional activities directed towards another franchisee's protected territory. They are also restricted from conducting in-person assessments or providing services within another franchisee's protected territory.
The FDD specifies that franchisees cannot offer or sell products or services in a franchise territory granted to another franchisee, with exceptions permitted by Sections 1.4 and 1.5 of the agreement. These territorial protections do not extend to the solicitation of employees, meaning other franchisees can still advertise for and solicit employees within your territory.
After the franchise agreement terminates, the franchisee is restricted for two years from operating a similar business within 15 miles of their former territory or any other Caring Transitions franchise territory. This includes restrictions on soliciting referrals within those areas. These restrictions are in place to protect Caring Transitions' business interests and the interests of its franchisees.