What is the first gross receipt target a Caring Transitions franchisee must meet to qualify for a rebate?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
sarily coincide with a calendar year. For example, a Year may be the period from April 1, 2024 through March 31, 2025, or from July 1, 2024 through June 30, 2025.
- (c) The "Rebate Period" begins on the Commencement Date and ends on the day before the fifth anniversary of the Commencement Date.
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Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee can receive a rebate of $10,000 of the franchise fee if they attain at least $900,000 in cumulative gross receipts during the two-year period after the Commencement Date. The Commencement Date is defined as the first day of the first month following the month in which the franchisee completes the initial training program.
This rebate acts as an incentive for franchisees to develop their franchised business and territory. It is important to note that this is the first of a series of potential rebates, with increasing gross receipt targets required to qualify for subsequent rebates. If a franchisee fails to meet the initial gross receipt target of $900,000 within the specified two-year period, they will be ineligible for any further rebates, regardless of future gross receipts.
To be eligible for any rebates, the Caring Transitions franchisee must strictly comply with all obligations under any agreement with the franchisor throughout the entire Rebate Period. This includes timely reporting gross receipts, paying all royalties, national branding fees, and technology fees, and attending all franchise system national and regional conferences and required on-site training centers. The franchisee must also execute a general release in a form prescribed by the franchisor prior to each rebate. If the Franchise Agreement is terminated for any reason prior to the end of its initial term, then the franchisee must return all rebates to the franchisor, if any.