What is the definition of 'shared referral sources' for a Caring Transitions franchise, as referenced in Item 15?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
A "Shared Referral Source" is a person or organization that: (i) because of its purpose or the nature of its business, frequently encounters opportunities to recommend, to its customers, members, or to the general public, providers of services
similar to the services offered by a Caring Transitions franchise; and (ii) though it may be physically located within one franchise territory, serves a geographic area larger than that franchise territory. Examples of Shared Referral Sources (by way of illustration and not limitation) are attorneys, bank trust departments, publications of a general circulation, real estate agents and brokers, funeral homes, senior care facilities, and similar organizations. Franchisor retains the sole and exclusive right to identify Shared Referral Sources on a case-by-case basis, in Franchisor's sole and absolute discretion. All disputes between franchisees of the System relating to Shared Referral Sources will be resolved by Franchisor, whose decision will be final and binding upon all parties. Nothing in this paragraph authorizes or permits Franchisee to offer, sell or provide Permitted Products and Services outside the Territory described in Exhibit B, or to sell or provide products or services to a Shared Referral Source located in a franchise territory licensed to another franchisee of the System.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 33)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a "Shared Referral Source" is defined as an entity that, due to its nature or business, frequently recommends service providers similar to those offered by a Caring Transitions franchise. These sources, while potentially located within a specific franchise territory, often serve a broader geographic area.
The FDD provides examples of Shared Referral Sources, including attorneys, bank trust departments, publications of general circulation, real estate agents and brokers, funeral homes, and senior care facilities. However, Caring Transitions retains the exclusive right to identify Shared Referral Sources on a case-by-case basis, using its sole discretion. Any disputes among franchisees regarding Shared Referral Sources will be resolved by Caring Transitions, with their decision being final and binding.
The Caring Transitions FDD emphasizes that franchisees do not have exclusive rights to solicit referrals from Shared Referral Sources within their territory. Other franchisees can also solicit these sources. Conversely, franchisees can solicit Shared Referral Sources located in other franchisees' territories. This arrangement allows for a broader reach and potential client base for all franchisees within the Caring Transitions system.