Is the Caring Transitions franchise granted an exclusive territory?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the franchise granted hereunder is otherwise non-exclusive and is granted subject to the terms and conditions of Sections 1.4 through 1.10 and 8.6 of this agreement.
Except as expressly described in this paragraph, Franchisee does not have any "exclusive territory" or any "exclusive," "protected," or "reserved" territorial or similar rights, and there is and will be no limitation on Franchisor's rights to locate and consent to the location of other Caring Transitions Franchises or other facilities of any type at any location, regardless of the distance from, impact on, or vicinity of, the franchised business or the number of Caring Transitions Franchises in an area or market.
Except as permitted by Sections 1.4 and 1.5 below, Franchisee may not provide or sell products or services in a franchise territory granted to another franchisee of the System.
The territorial protection granted under this Section does not extend to the solicitation of employees, and nothing in this agreement prohibits other franchisees of Franchisor from advertising for and soliciting employees in Franchisee's Territory.
Franchisee's right to exclusively operate the franchised business within Franchisee's Territory (subject to Sections 1.4 and 1.5 below) shall begin once Franchisee has completed Franchisor's initial training program (see Section 7.1 below) and the franchised business has become fully operational.
- 1.4 National Accounts.
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 the 2025 Caring Transitions Franchise Disclosure Document, the franchise is granted a territory, but it is subject to certain conditions and is otherwise non-exclusive. The franchisee's right to exclusively operate within their territory begins after completing the initial training program and once the business is fully operational.
However, Caring Transitions franchisees do not have exclusive rights to National Accounts or Shared Referral Sources. The franchisor retains the right to service National Accounts and award the right to service them to any franchisee. A "National Account" is defined as a special customer designated by the franchisor, often a large business or government agency. Similarly, franchisees can solicit referrals from Shared Referral Sources, which are entities that frequently recommend service providers to their customers, even if those sources are located within another franchisee's territory.
Moreover, the Caring Transitions franchisor retains rights not expressly granted to the franchisee. If the franchisor merges with or acquires another business system, the operation of that system within the franchisee's territory does not violate the franchisee's rights. Franchisees are restricted from advertising or providing services in other franchisees' protected territories, with violations resulting in remittance of gross receipts from prohibited activities to the franchisor. These restrictions apply for a period of two years after the termination of the franchise agreement within a 15-mile radius of the franchisee's territory or any other Caring Transitions franchise territory.