What are Caring Transitions employees prohibited from doing during their association with the franchisee regarding diverting business or customers?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.10 Marketing and Solicitation Restrictions.
Except as permitted by section 1.4, 1.5, or 8.6, Franchisee shall not directly or indirectly: (i) engage in advertising, marketing, or promotional activities in, or that are directed or targeted primarily to, the protected territory of another Caring Transitions franchisee; or (ii) conduct in-person assessments, provide Permitted Products and Services, or provide products and services that compete with Permitted Products and Services, in the protected territory of any other Caring Transitions franchisee.
Any violation of any of the restrictions of this section by Franchisee will constitute a material default of this Franchise Agreement.
Within 10 days after receiving written notice of such violation, Franchisee shall remit to Franchisor all Gross Receipts earned or received from any activities prohibited by this section.
If Franchisee receives a request for services to be provided in the protected territory of another Caring Transitions franchisee, then Franchisee shall promptly notify such other franchisee of the request and provide appropriate contact information for the potential client.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
Based on the 2025 Caring Transitions Franchise Disclosure Document, franchisees face specific restrictions regarding marketing and soliciting customers in other franchisees' territories. Except as permitted by sections 1.4, 1.5, or 8.6, a Caring Transitions franchisee cannot engage in advertising, marketing, or promotional activities that target another franchisee's protected territory. Additionally, franchisees are prohibited from conducting in-person assessments, providing services, or offering products that compete with the approved services and products within another franchisee's protected area.
If a Caring Transitions franchisee violates these restrictions, it constitutes a material breach of the Franchise Agreement. In such cases, the franchisee must remit all gross receipts earned from the prohibited activities to the Franchisor within 10 days of receiving written notice of the violation. Furthermore, if a franchisee receives a service request that falls within another franchisee's protected territory, they are obligated to promptly notify the other franchisee and provide the potential client's contact information.
These measures are in place to protect the territorial rights of each Caring Transitions franchisee and maintain a fair and balanced competitive environment within the franchise system. Franchisees must be diligent in ensuring their marketing and service activities do not infringe upon the protected territories of their fellow franchisees. Understanding and adhering to these restrictions is crucial for maintaining compliance with the Franchise Agreement and avoiding potential penalties.