What is the duration of the non-compete period for a Caring Transitions franchisee after the termination or transfer of the Franchise Agreement?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Except as otherwise approved in writing by Franchisor, Franchisee shall not, for a continuous and uninterrupted period commencing upon the expiration, termination, or transfer of this Agreement (regardless of the cause for termination) and continuing for two (2) years thereafter, directly or indirectly, for itself or through, on behalf of, or in conjunction with any person (including a spouse, child, parent, or sibling of Franchisee or of a principal of Franchisee), partnership, limited liability company, corporation, or other entity:
- (1) own, maintain, operate, engage in, or have any interest in any business offering moving management, estate liquidation or household liquidation services, or any other services that had been offered by the franchised business, that is or is intended to be located or which operates in or within 15 miles of the geographical boundaries of Franchisee's Territory or within 15 miles of the geographical boundaries any Caring Transitions franchisee's Territory; or
- (2) promote, sell, procure, provide or solicit referrals for, or offer to sell, procure, provide or solicit referrals for, moving management, estate liquidation or household liquidation services, any Permitted Products and Services, or any other services that are offered in the franchised business, from any Shared Referral Sources (as defined in Section 8.7 above) or in or within 15 miles of the geographical boundaries of
Franchisee's Territory or in or within 15 miles of any other Caring Transitions franchisee's Territory.
- (b) Subparagraphs (a)(1) and (a)(2) above are severable and contain different but overlapping restrictions that shall be enforced simultaneously whenever permitted by applicable law.
If any of those subparagraphs is held to be invalid or unenforceable in any respect, then such provision is to be modified to the extent necessary to permit its enforcement, and the remaining provisions will be unaffected thereby.
Franchisee specifically acknowledges and agrees that the geographic and temporal restrictions on Franchisee's ability to compete with Franchisor and Franchisor's franchisees are reasonable and necessary to protect Franchisor's business interests in the relevant markets.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, a franchisee is subject to a non-compete period of two years following the expiration, termination, or transfer of the Franchise Agreement. This restriction applies regardless of the reason for termination.
During this two-year period, the franchisee is prohibited from directly or indirectly engaging in or having any interest in a business that offers moving management, estate liquidation, or household liquidation services. This restriction applies to businesses located or operating within 15 miles of the franchisee's territory or within 15 miles of any other Caring Transitions franchisee's territory.
Additionally, the franchisee cannot promote, sell, solicit referrals for, or offer to sell moving management, estate liquidation, or household liquidation services from any shared referral sources or within the specified 15-mile radius of any Caring Transitions territory. The FDD specifies that these restrictions are severable and contain different but overlapping restrictions that shall be enforced simultaneously whenever permitted by applicable law.
Caring Transitions emphasizes that these geographic and temporal restrictions are considered reasonable and necessary to protect the company's business interests in the relevant markets. This means that a franchisee exiting the system must be prepared to avoid competitive activities within the defined scope for two years, or risk legal enforcement of the non-compete agreement.