For each Caring Transitions franchise operated by the Franchisor or an affiliate in a geographical area with a Cooperative, what contribution does the Franchisor make?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) For each Caring Transitions franchise operated by Franchisor or an affiliate of Franchisor in a geographical area for which a Cooperative has been established, Franchisor shall make a Cooperative Contribution on the same basis as assessments required of comparable franchisees that are members of the same Cooperative.
- (g) Cooperatives established by Franchisor are intended to be of perpetual duration. However, Franchisor maintains the right to terminate any Cooperative. Franchisor shall use any unexpended monies from the terminated Cooperative only for advertising or promotional purposes for the System.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, when Caring Transitions operates a franchise in an area where a Cooperative exists, the Franchisor will make a Cooperative Contribution. This contribution will be on the same basis as the assessments required of comparable franchisees who are members of that same Cooperative.
This means that Caring Transitions, when acting as a franchisee in a cooperative area, will financially support the cooperative in a manner consistent with how other franchisees in that cooperative are assessed. The contribution ensures that the Franchisor participates in local or regional advertising and marketing efforts alongside its franchisees.
Cooperatives are intended to be perpetual, but Caring Transitions retains the right to terminate any Cooperative. If a Cooperative is terminated, any unexpended funds will be used by Caring Transitions for advertising or promotional purposes for the Caring Transitions system. This protects franchisees by ensuring that cooperative funds are used to support the brand even if a co-op dissolves.