What is the duration of the period during which a Caring Transitions franchisee is restricted from soliciting clients of the Franchised Business for a Competitive Business?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
and ending on the second anniversary thereof (the "Restrictive Period"), directly or indirectly, for him/herself or through, on behalf of, or in conjunction with a Covered Person:
- (5) divert or attempt to divert any business or client of the Franchised Business to a Competitive Business or, for the benefit of a Competitive Business, have any commercial dealings with or solicit the custom of anyone who was a client of or received services from the Franchised Business at any time during the one-year period prior to the beginning of the Restrictive Period; or
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee is restricted from soliciting clients of the Franchised Business for a Competitive Business during the Restrictive Period. This Restrictive Period begins upon the earlier of the expiration or termination of the Franchise Agreement, or the termination of the Covenantor's relationship with the Franchisee. The period extends until the second anniversary thereof.
Specifically, the franchisee cannot divert or attempt to divert any business or client of the Franchised Business to a Competitive Business. Nor can they have any commercial dealings with or solicit the custom of anyone who was a client of or received services from the Franchised Business at any time during the one-year period prior to the beginning of the Restrictive Period for the benefit of a Competitive Business.
This restriction is in place to protect Caring Transitions' business interests and customer relationships. It prevents a former franchisee from immediately leveraging their knowledge of Caring Transitions' clients to benefit a competing business. The covenant applies to anyone who was a client of the Franchised Business within the year leading up to the start of the Restrictive Period, ensuring a broad scope of protection for Caring Transitions.