After the Caring Transitions franchise agreement expires or terminates, for how long is the franchisee prohibited from soliciting customers of the franchised business?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not, directly or indirectly, for itself or through, on behalf of, or in conjunction with any person or entity for a continuous and uninterrupted period commencing upon the expiration or termination of this agreement (regardless of the cause for termination) and continuing for two years thereafter, directly or indirectly: (i) solicit or sell products or services to any person who was a customer of the franchised business at any time during the term of this agreement; or (ii) promote or solicit referrals for estate liquidation or household liquidation services or moving management services, any Permitted Products and Services, or any other services that had been offered by the franchised business, from any Shared Referral Source (as defined in Section 1.5 above) located in the Territory.
The two-year time period referred to in this paragraph will be stayed during any violation or breach of the terms of this paragraph.
The covenants in this paragraph will survive the expiration, termination or cancellation of this agreement.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee is restricted from soliciting customers of the franchised business for two years after the franchise agreement's expiration or termination. This restriction applies regardless of the reason for termination. Specifically, the franchisee cannot directly or indirectly solicit or sell products or services to anyone who was a customer during the term of the agreement.
Additionally, the franchisee is prohibited from promoting or soliciting referrals for estate liquidation, household liquidation, or moving management services from any Shared Referral Source within the territory. This includes any Permitted Products and Services or any other services that had been offered by the franchised business. This restriction is in place to protect Caring Transitions' customer base and referral networks from being unfairly taken by a former franchisee.
The two-year non-solicitation period can be extended if the franchisee violates the terms of the non-solicitation agreement. Any period of violation or breach will effectively pause the clock on the two-year restriction, prolonging the time the franchisee must refrain from soliciting customers and referral sources. These covenants are designed to survive the expiration, termination, or cancellation of the franchise agreement, ensuring continued protection for the Caring Transitions brand and its franchisees.
These types of non-solicitation clauses are common in franchise agreements to protect the franchisor's and other franchisees' investments in building customer relationships and brand recognition. Prospective franchisees should carefully consider these restrictions and how they might impact their future business activities should they decide to leave the Caring Transitions system.