Where is a Caring Transitions franchisee allowed to operate the franchised business?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
The Territory described in Section 1.2 of the Franchise Agreement to which this Exhibit B is attached shall consist of the following postal codes: between Franchisor and Franchisee. The parties are signing this Exhibit B on the date(s) set forth below. This Exhibit B is to be attached to, incorporated in and made a part of the Franchise Agreement FRANCHISEE(S): FRANCHISOR: C.T. FRANCHISING SYSTEMS, INC. Signature By: Date: Signature Date:
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.
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.
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.
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's primary area of operation is within their assigned territory, which is defined by postal codes as outlined in Exhibit B of the Franchise Agreement. This right to operate exclusively within the designated territory begins after the franchisee completes the initial training program and the business becomes fully operational. However, this territorial exclusivity is subject to certain conditions and exceptions.
Caring Transitions' franchise agreement specifies that franchisees do not have exclusive rights to serve "National Accounts" within their territory. The franchisor retains the right to allow other franchisees to provide services to these National Accounts, which are special customers designated by Caring Transitions, such as national or regional businesses or government agencies, even within another franchisee's territory. With prior written consent from Caring Transitions, a franchisee may also provide services to National Accounts in another franchisee's territory.
It's important to note that the franchise granted is non-exclusive, meaning Caring Transitions can establish or consent to the establishment of other Caring Transitions franchises or facilities at any location, regardless of proximity to an existing franchise. This lack of an exclusive territory, coupled with the National Accounts exception, means that while franchisees have a primary operating area, there are circumstances where other franchisees or the franchisor can operate within that same area.