What fees are Caring Transitions franchisees authorized to pay via electronic debit?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby authorizes Franchisor to initiate debit entries and credit correction entries to the EDT Account for payment of Royalties, National Branding Fees, Technology Fees, interest, late fees, legal expenses, and any other amounts payable to Franchisor or any affiliate of Franchisor.
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 required to make all payments to Caring Transitions through an electronic depository transfer account (EDT Account). This account must be established at a national banking institution approved by Caring Transitions. Franchisees authorize Caring Transitions to initiate debit entries and credit correction entries to this EDT Account for various fees.
The fees that Caring Transitions franchisees are authorized to pay via electronic debit include royalties, which are a percentage of gross receipts, with a minimum amount required monthly. Franchisees also pay a National Branding Fee, also calculated as a percentage of gross receipts or a minimum monthly amount, and a Technology Fee of $250 per month for technology tools provided by Caring Transitions.
In addition to these primary fees, franchisees may also pay interest, late fees, and legal expenses through the EDT Account. Franchisees must ensure sufficient funds are available in their EDT Account to cover these obligations as they become due. If a debit is denied due to insufficient funds or account closure, the franchisee will incur a $50 charge-back fee, reimburse Caring Transitions for bank charges, and pay interest on the unpaid amount. Caring Transitions reserves the right to require payments through methods other than the EDT Account.