What costs does the Caring Transitions transfer fee cover?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee – Note 1 | The greater of either $15,000 or 10% of the purchase price, plus legal and administrative costs | Prior to consummation of transfer | Payable when you sell your franchise to, among other things, cover the expenses of training the franchise purchaser; no transfer fee is payable for transfers to a company you form for the convenience of ownership |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, the transfer fee is payable when a franchisee sells their franchise. The fee is the greater of $15,000 or 10% of the purchase price, plus legal and administrative costs. This fee is intended to cover the expenses of training the new franchise purchaser.
However, the FDD specifies that no transfer fee is payable for transfers to a company the franchisee forms for the convenience of ownership. This means if a franchisee initially signs the agreement individually and then transfers the franchise to their own corporation or LLC, they would not have to pay the transfer fee.
It is important for prospective franchisees to understand all the conditions under which transfer fees are assessed, as these can represent a significant cost when exiting the franchise system. Franchisees should factor in these potential costs when projecting the financial returns on their Caring Transitions franchise.