How is the 'Commencement Date' defined in the Caring Transitions addendum?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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- To make this addendum easier to read and understand, certain terms have been defined below and will be capitalized throughout the addendum. Capitalized terms that are not defined below may be defined in the section where they first appear. Capitalized terms used but not defined in this addendum are used as defined in the Franchise Agreement.
- (a) The "Commencement Date" is the first day of the first month following the month in which Franchisee or its Designated Individual completes the initial training program described in section 7.1 of the Franchise Agreement.
- (b) A "Year" is a one-year period beginning on the Commencement Date or the anniversary of the Commencement Date. The parties acknowledge that a "Year" as defined in this Addendum may not necessarily coincide with a calendar year. For example, a Year may be the period from April 1, 2024 through March 31, 2025, or from July 1, 2024 through June 30, 2025.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the "Commencement Date" is defined within an addendum to the franchise agreement. Specifically, the Commencement Date marks the beginning of the franchise's operational timeline and is used to determine periods for certain incentives.
The Commencement Date is defined as the first day of the month immediately following the month in which the franchisee or their designated individual completes the initial training program. This means that if training concludes anytime during the month of May, for example, the Commencement Date would be June 1st.
Furthermore, the addendum clarifies that a "Year" is a one-year period that starts on the Commencement Date or its anniversary. This definition is important because certain performance targets and rebate eligibility are measured based on these "Year" periods following the Commencement Date. The agreement emphasizes that a "Year" as defined in the addendum might not align with a standard calendar year, providing examples such as April 1, 2024, through March 31, 2025, or July 1, 2024, through June 30, 2025.