Who controls the national and regional advertising funds for Caring Transitions?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
11.1. Control of Advertising. Recognizing the value of advertising and the importance of consistency of advertising and promotion to the furtherance of the goodwill and public image of the System and the Marks, the parties agree that Franchisor shall conduct, determine, maintain, and administer all national and regional advertising funds that are or may hereafter be established pursuant to Article 11 of this
agreement, and shall have sole discretion over the concepts, materials, media, type, nature, scope, frequency, place, form, copy, layout and content of all national, regional, and local advertising.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the franchisor has control over the national and regional advertising funds. Specifically, Caring Transitions conducts, determines, maintains, and administers all national and regional advertising funds established, and has sole discretion over all aspects of advertising. This includes the concepts, materials, media, type, nature, scope, frequency, place, form, copy, layout, and content of all national, regional, and local advertising.
This means that as a franchisee, you will contribute to the national advertising fund, known as the National Branding Fee, as required in Section 5.2 of the agreement. Caring Transitions also has the option to establish one or more regional advertising funds, designating geographical areas as regions for these funds. The funds are intended to maximize public recognition of the Caring Transitions brand for the benefit of all franchises within the system or a specific region.
Franchisee contributions to the Funds are kept in a separate account from the franchisor's other monies. These contributions are to be used exclusively for advertising and promotional activities. While franchisees contribute to these funds, the franchisor is not obligated to ensure that expenditures are equivalent or proportionate to each franchisee's contribution, nor are they required to ensure that each franchisee benefits directly or pro rata from the advertising placements. This is a common practice in franchising, where advertising funds are managed to benefit the system as a whole, rather than individual franchisees.
Caring Transitions may also establish local or regional marketing and advertising cooperatives where at least two franchises are located, and franchisees may be required to participate in these cooperatives. Additionally, franchisees are required to spend a minimum amount on local marketing, which is $399 a month for the first 12 months of operation, and at least 4% of gross receipts annually thereafter. This local marketing expenditure is separate from the National Branding Fee and is intended for marketing, advertising, promotion, and public relations within the franchisee's territory.