Can Caring Transitions alter the payment period for royalties and other fees, and if so, what notice is required?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Franchisor may, after providing thirty days' notice, alter the payment period for the Royalty, National Branding Fee, and any other required payments from monthly to weekly, biweekly, or such other period as Franchisor designates.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, Caring Transitions has the ability to alter the payment period for royalties, the National Branding Fee, and other required payments. Currently, these payments are made monthly. However, Caring Transitions can change the payment period to weekly, biweekly, or any other period they designate.
To implement this change, Caring Transitions must provide franchisees with thirty days' notice before altering the payment period. This advance notice allows franchisees time to adjust their financial planning and cash flow management to accommodate the new payment schedule.
This provision gives Caring Transitions flexibility in managing its revenue stream and potentially aligning payment schedules with its own financial obligations. For a prospective franchisee, it's important to be aware of this potential change and to factor it into their financial projections. Regular communication with Caring Transitions will be important to stay informed of any upcoming changes to payment schedules.