What is the 'Buyer's Premium' in the context of a Caring Transitions franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- (vii) Franchisee shall comply fully with the terms and conditions of business over the Internet and shall ensure that such terms and conditions of business receive Franchisor's prior written approval. "Terms and conditions of business over the Internet" include, by way of example, Franchisor's policies regarding the Buyer's Premium and its receipt of same.
A "Buyer's Premium" is a payment that may be required of customers for purchasing items through any Web site, including Franchisor's designated auction Web site www.CTBids.com. Franchisor reserves the right to set a maximum or minimum Buyer's Premium.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a "Buyer's Premium" is a payment that may be required of customers who purchase items through any website, including Caring Transitions' designated auction website, www.CTBids.com. Caring Transitions retains the right to set a maximum or minimum Buyer's Premium.
For a prospective franchisee, this means that Caring Transitions has the authority to dictate the pricing structure on online sales platforms. This could impact the franchisee's revenue and pricing strategies, as they must adhere to the franchisor's set limits for the Buyer's Premium.
Furthermore, franchisees must comply fully with Caring Transitions' policies regarding the Buyer's Premium. These policies are included in the "terms and conditions of business over the Internet," which require the franchisor's prior written approval. This highlights the importance of understanding and adhering to the franchisor's guidelines for online sales and pricing.