What is the duration of the non-solicitation period for Caring Transitions franchisees after the agreement expires or terminates?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not, directly or indirectly, for itself or through, on behalf of, or in conjunction with any person or entity for a continuous and uninterrupted period commencing upon the expiration or termination of this agreement (regardless of the cause for termination) and continuing for two years thereafter, directly or indirectly: (i) solicit or sell products or services to any person who was a customer of the franchised business at any time during the term of this agreement; or (ii) promote or solicit referrals for estate liquidation or household liquidation services or moving management services, any Permitted Products and Services, or any other services that had been offered by the franchised business, from any Shared Referral Source (as defined in Section 1.5 above) located in the Territory.
The two-year time period referred to in this paragraph will be stayed during any violation or breach of the terms of this paragraph.
The covenants in this paragraph will survive the expiration, termination or cancellation of this agreement.
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 subject to a non-solicitation period of two years following the expiration or termination of their franchise agreement. During this two-year period, the franchisee is prohibited from soliciting or selling products or services to any person who was a customer of the franchised business at any time during the term of the agreement.
Additionally, the franchisee cannot promote or solicit referrals for estate liquidation, household liquidation services, or moving management services from any Shared Referral Source located in the Territory. This restriction applies regardless of the reason for the termination of the agreement. The FDD specifies that this two-year period can be extended if the franchisee violates the terms of the non-solicitation agreement, with the time period being stayed during any breach.
These non-solicitation covenants are designed to protect Caring Transitions' customer relationships and referral sources. The restrictions prevent a former franchisee from leveraging the goodwill and relationships built during their time with Caring Transitions to unfairly compete with the franchisor or other franchisees after leaving the system. Prospective franchisees should carefully consider the implications of these restrictions, as they could limit their business activities for two years after the franchise agreement ends.