What are the continuing monthly royalty payments required by Caring Transitions for the first 12 months?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
. No financing is offered, and the entire fee is nonrefundable once the franchisee begins the upfront training. Franchisees are then required to pay continuing monthly royalties of the greater of $300 or 5% of their gross revenue for 12 months and $500 or 6% of their gross revenue thereafter (which covers continued use of the Company's brand and serv
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees are required to pay continuing monthly royalties for the first 12 months of operation. These royalties are calculated as the greater of $300 or 5% of their gross revenue.
This means that a new Caring Transitions franchisee will need to budget for these ongoing royalty payments from the start of their business. The actual amount paid each month will depend on the franchisee's sales performance; if 5% of gross revenue exceeds $300, the franchisee will pay the percentage-based royalty. Otherwise, the minimum royalty payment is $300.
In addition to the royalty fee, Caring Transitions franchisees must also pay a $250 monthly technology fee, which covers software licensing and support. After the initial 12 months, the royalty structure changes to the greater of $500 or 6% of gross revenue, indicating a potential increase in ongoing costs as the business matures.