What is the final gross receipt target a Caring Transitions franchisee must meet to qualify for a rebate?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
onal $10,000 of the Franchise Fee;
- (c) at least $2,300,000 of cumulative Gross Receipts during the four-Year period after the Commencement Date and qualified for a rebate under subparagraphs (a) and (b), then Franchisor will rebate to Franchisee an additional $10,000 of the Franchise Fee; and
(d) at least $3,100,000 of cumulative Gross Receipts during the five-Year period after the Commencement Date and qualified for a rebate under subparagraphs (a)-(c), then Franchisor will rebate to Franchisee the remainder of the Franchise Fee paid by Franchisee
If Franchisee does not have sufficient Gross Receipts to qualify for any one of the rebates in subparagraphs (a) – (c) above, then Franchisee will be ineligible for any additional rebates thereafter, regardless of Franchisee's subsequent Gross Receipts. Rebates shall be paid within 90 days after the respective anniversary date of the Commencement Period regardless of when the Gross Revenue target was attained, provided that Franchisee is in full compliance with the Franchise Agreement.
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- Strict Compliance. To be eligible to receive any rebates under this addendum, Franchisee must (a) strictly and timely comply with all obligations under any agreement or instrument between Franchisee and Franchisor throughout the entire Rebate Period, including, by way of example, timely reporting Gross Receipts, timely paying all Royalties, National Branding Fees, Technology Fees, and other amounts due under the Franchise Agreement, (b) have attended all franchise system national conferences and regional conferences and all required on-site training centers, and (c) execute a general release in a form prescribed by Franchisor prior to each rebate. If the Franchise Agreement is terminated for any reason prior to the end of its initial term, then Franchisee must return all rebates to Franchisor,
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee must attain at least $3,100,000 in cumulative gross receipts during the five-year period after the commencement date to qualify for a rebate of the remaining franchise fee. This is contingent upon the franchisee having already qualified for rebates in previous years by meeting the targets for the two, three, and four-year periods.
To be eligible for any rebates, the Caring Transitions franchisee must strictly comply with all obligations under any agreement with the franchisor throughout the rebate period. This includes timely reporting gross receipts, paying all royalties, national branding fees, technology fees, and other amounts due under the Franchise Agreement. Additionally, the franchisee must have attended all franchise system national and regional conferences, as well as all required on-site training centers.
Prior to receiving each rebate, the Caring Transitions franchisee must execute a general release in a form prescribed by the franchisor. If the Franchise Agreement is terminated for any reason before the end of its initial term, the franchisee must return all rebates to the franchisor. Committing any default of any agreement during the Rebate Period will render the rebate addendum null and void, in addition to any other remedies available to the franchisor.