What conditions must a Caring Transitions franchisee meet to be eligible for rebates?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
onal $10,000 of the Franchise Fee;
- (c) at least $2,300,000 of cumulative Gross Receipts during the four-Year period after the Commencement Date and qualified for a rebate under subparagraphs (a) and (b), then Franchisor will rebate to Franchisee an additional $10,000 of the Franchise Fee; and
(d) at least $3,100,000 of cumulative Gross Receipts during the five-Year period after the Commencement Date and qualified for a rebate under subparagraphs (a)-(c), then Franchisor will rebate to Franchisee the remainder of the Franchise Fee paid by Franchisee
If Franchisee does not have sufficient Gross Receipts to qualify for any one of the rebates in subparagraphs (a) – (c) above, then Franchisee will be ineligible for any additional rebates thereafter, regardless of Franchisee's subsequent Gross Receipts. Rebates shall be paid within 90 days after the respective anniversary date of the Commencement Period regardless of when the Gross Revenue target was attained, provided that Franchisee is in full compliance with the Franchise Agreement.
-
- Strict Compliance. To be eligible to receive any rebates under this addendum, Franchisee must (a) strictly and timely comply with all obligations under any agreement or instrument between Franchisee and Franchisor throughout the entire Rebate Period, including, by way of example, timely reporting Gross Receipts, timely paying all Royalties, National Branding Fees, Technology Fees, and other amounts due under the Franchise Agreement, (b) have attended all franchise system national conferences and regional conferences and all required on-site training centers, and (c) execute a general release in a form prescribed by Franchisor prior to each rebate. If the Franchise Agreement is terminated for any reason prior to the end of its initial term, then Franchisee must return all rebates to Franchisor,
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee must meet several strict conditions to be eligible for any rebates. The franchisee must strictly and promptly comply with all obligations under any agreement with Caring Transitions throughout the entire rebate period. This includes timely reporting of Gross Receipts and timely payment of all Royalties, National Branding Fees, Technology Fees, and any other amounts due under the Franchise Agreement.
In addition to financial and reporting compliance, the franchisee must have attended all franchise system national conferences, regional conferences, and all required on-site training centers. Prior to receiving each rebate, the franchisee must execute a general release in a form prescribed by Caring Transitions. This release likely protects Caring Transitions from any future claims by the franchisee related to the franchise agreement.
Furthermore, if the Franchise Agreement is terminated for any reason before the end of its initial term, the franchisee must return all rebates received to Caring Transitions. Any default on any agreement between the franchisee and Caring Transitions during the rebate period will render the rebate addendum irrevocably null and void, in addition to any other remedies Caring Transitions may pursue. The franchisee must also achieve at least $3,100,000 of cumulative Gross Receipts during the five-year period after the Commencement Date and qualified for a rebate under subparagraphs (a)-(c) to be eligible for a rebate of the remainder of the Franchise Fee paid by Franchisee.
These conditions highlight the importance of maintaining strict compliance with all aspects of the franchise agreement to be eligible for rebates. Prospective franchisees should carefully consider these requirements and ensure they can meet them before expecting to receive any rebates from Caring Transitions.