By what day of the month must a Caring Transitions franchisee pay the Technology Fee?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
monthly to weekly, biweekly, or such other period as Franchisor designates.
- 5.7 Technology Fee. Franchisee shall pay, to Franchisor or a designated third-party, a Technology Fee of $250 by the fifth day of each month, for Internet marketing, web hosting, search engine optimization, email addresses, and other technology tools mandated, provided, or developed by Franchisor. Franchisee shall be required to pay the Technology Fee beginning on the fifth day of the third month following the month in which Franchisee or the Designated Individual completes the initial training program required by Section 7.1, unless (1) Franchisee has operated a franchise under another franchise agreement with an effective date at least six months earlier than the Effective Date; or (2) Franchisee acquired the Territory from another Caring Transitions franchisee, in which case the Fee is required immediately. We r
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees are required to pay a Technology Fee of $250 by the fifth day of each month. This fee covers various technology-related services provided by Caring Transitions, such as Internet marketing, web hosting, search engine optimization, and email addresses. These are technology tools that Caring Transitions mandates, provides, or develops for its franchisees.
However, new Caring Transitions franchisees are not immediately required to pay the Technology Fee. The obligation to pay this fee begins on the fifth day of the third month following the month in which the franchisee or their designated individual completes the initial training program. This grace period allows new franchisees time to establish their business before incurring the Technology Fee.
There are exceptions to the standard commencement of the Technology Fee. If a franchisee has previously operated a Caring Transitions franchise under another agreement that was effective at least six months before the current agreement's effective date, or if the franchisee acquired their territory from another existing Caring Transitions franchisee, the Technology Fee is required immediately. This immediate requirement applies because these franchisees are already familiar with the Caring Transitions system and its technology.
Caring Transitions also retains the right to increase the Technology Fee, provided they give franchisees 30 days' written notice before the increase takes effect. This clause allows Caring Transitions to adjust the fee to reflect changes in the cost of providing the technology services or to enhance the services offered.