What is the exception to the Caring Transitions territorial restrictions regarding National Accounts?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
The rights granted to Franchisee by this agreement do not include the exclusive right to offer or provide products or services to National Accounts, and National Accounts are hereby specifically excluded from Franchisor's territorial restrictions in Section 1.3 above.
Franchisee acknowledges that other franchisees of the System may provide products and services to National Accounts at or from locations in Franchisee's Territory.
With Franchisor's prior written consent, Franchisee may provide products and services to National Accounts at or from locations in a franchise territory granted to another franchisee of the System.
A "National Account" means a special customer (which may be, but is not limited to, a national or regional customer, other large business, or government agency) designated as such by Franchisor from time-to-time in its business judgment.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the territorial restrictions outlined in Section 1.3 do not apply to National Accounts. This means that a Caring Transitions franchisee does not have the exclusive right to offer or provide services to National Accounts within their territory.
Caring Transitions defines a "National Account" as a special customer, which can include national or regional customers, large businesses, or government agencies, as designated by Caring Transitions. These accounts typically have facilities that extend beyond a single franchise territory. Other franchisees within the Caring Transitions system may provide services to National Accounts within a franchisee's territory.
However, a franchisee can provide services to National Accounts in another franchisee's territory, but only with Caring Transitions' prior written consent. Caring Transitions retains the exclusive right to identify and service National Accounts and to award the right to service them to any franchisee, using its sole discretion. Any disputes between franchisees regarding National Accounts will be resolved by Caring Transitions, and their decision will be final.