What is the 'Cooperative Contribution' for a Caring Transitions franchisee, and who determines the amount?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Each month that a Cooperative is in existence for Franchisee's geographical area, Franchisee shall contribute to the Cooperative an amount specified by Franchisor or the Cooperative (the "Cooperative Contribution").
Franchisee's Cooperative Contribution will not be credited towards the National Branding Fee required by Section 5.2 of this agreement.
- (e) The members of the Cooperative will determine the amount of the Cooperative Contribution in accordance with its governing documents, but the Cooperative Contribution may not exceed three percent of Franchisee's Gross Receipts unless the members of the Cooperative, by a
majority vote conducted in accordance with its rules, bylaws, or other governing documents, agree to a Cooperative Contribution in excess thereof. Franchisee shall pay its Cooperative Contribution, together with any statements or reports that Franchisor or the Cooperative (with Franchisor's prior written approval) may require, on a date each month determined by the Cooperative, but no later than the tenth day of each month.
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 Cooperative Contribution is a monthly amount that franchisees contribute to a local or regional marketing and advertising cooperative. The amount is specified either by Caring Transitions or the Cooperative itself.
The Cooperative's members determine the specific amount of the Cooperative Contribution, but it cannot exceed 3% of the franchisee's Gross Receipts unless a majority of the Cooperative members vote to exceed that amount. Franchisees must pay their Cooperative Contribution, along with any required statements or reports, by a date determined by the Cooperative, but no later than the tenth day of each month.
It's important to note that the Cooperative Contribution is separate from the National Branding Fee and cannot be credited towards it. Caring Transitions has the right to prescribe or approve the form and manner in which each Cooperative is organized and governed, and will specify when the Cooperative commences operations. These cooperatives are designed for the purpose of administering local or regional advertising programs and creating standardized promotional materials, subject to Caring Transitions' approval.