Is the deposit to reserve a Caring Transitions territory refundable?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
You can reserve a specific territory for up to 30 days by paying a $5,000 deposit and sending us a Remittance Form. The deposit is fully earned and non-refundable upon our receipt, in consideration of our reservation and removal from the market of your territory for 30 days, and will be applied toward your initial franchise fee. The required deposit to reserve a second territory is $10,
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, the deposit to reserve a territory is generally non-refundable. Specifically, a prospective franchisee can reserve a territory for up to 30 days by paying a $5,000 deposit. Upon Caring Transitions's receipt of this deposit, it is considered fully earned and non-refundable.
This non-refundable deposit compensates Caring Transitions for removing the reserved territory from the market for 30 days, preventing other potential franchisees from acquiring it during that period. However, the $5,000 deposit will be applied toward the initial franchise fee if the franchisee proceeds with the franchise agreement.
It is important for prospective Caring Transitions franchisees to understand that this deposit is at risk once paid. If the franchisee decides not to proceed with the franchise for any reason, the $5,000 deposit will not be returned. This is a common practice in franchising, as it protects the franchisor from losing potential revenue while holding a territory for a specific candidate.