How does Caring Transitions define 'Gross Receipts' for royalty calculation purposes?

According to Caring Transitions's 2025 Franchise Disclosure Document, "Gross Receipts" are defined as all revenue on a cash basis relating to or arising from the operation of the franchised business, prior to deducting client distributions and other costs of doing business. This definition is important because Caring Transitions calculates royalties and other fees based on a percentage of Gross Receipts.

For example, if a Caring Transitions franchisee sells household items in an estate sale on behalf of a client for $1,000, the Gross Receipts would be $1,000, and the royalty would be calculated from that amount. Gross Receipts also include all revenue from the sale of any goods or services under Caring Transitions' trademarks, regardless of whether those goods or services are typically provided by Caring Transitions franchise owners. This means that even if a franchisee offers a new or unique service under the Caring Transitions brand, the revenue generated from that service would still be included in Gross Receipts.

This comprehensive definition of Gross Receipts ensures that Caring Transitions receives royalties on all revenue streams generated by the franchise. It is important for prospective franchisees to understand this definition and how it impacts their royalty obligations. Franchisees should factor in the royalty percentage (6% of Gross Receipts) when projecting their potential earnings and managing their business finances. The franchisee also needs to be aware of the minimum royalty, which is $300 a month for 12 months after the minimum royalty start date and then $500 a month.