Where must Caring Transitions franchisee media advertising and direct mail be predominantly focused?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
ated Cooperative only for advertising or promotional purposes for the System.
11.12. Local Marketing.
- (a) Minimum Local Marketing. Franchisee shall, during the first 12 months of operation, spend at least $399 a month (the "Minimum Local Marketing Amount"). In the thirteenth month of operation and thereafter, Franchisee shall spend at least 4% of its Gross Receipts on Local Marketing on an annual basis. Local Marketing expenditures must be made directly by Franchisee and must be paid for each Territory owned by Franchisee. At Franchisor's request, Franchisee shall furnish Franchisor with an itemized report of Franchisee's Local Marketing expenditures for each month. Franchisee's failure to spend at least the Minimum Local Marketing Amount will constitute a default of this Agreement. Franchisee will have the right to cure the default by paying to the National Branding Fund, within one month after notice from Franchisor, the difference between the Minimum Local Marketing Amount for the relevant period(s) less Franchisee's actual Local Marketing expenditures for the same period(s). Franchisor reserves the right to designate suppliers for Local Marketing expenditures.
- (b) "Local Marketing" means marketing, advertising, promotion, and public relations within the Territory, and consists only of direct costs to purchase marketing materials, promotion, out-of-pocket expenses for the cost of advertising and sales promotion (including media placement charges, advertising agency fees and expenses, search engine optimization expenses, and cash payments), and such other activities and expenses as Franchisor in its discretion may specify. Franchisor may specify the types of promotional activities and costs that do not qualify as Local Marketing, including the face value of promotional coupons, cash donations, the cost of products or services donated or provided at a discou
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
Based on the 2025 Caring Transitions Franchise Disclosure Document, franchisees are required to engage in local marketing within their designated territory. During the first 12 months of operation, a Caring Transitions franchisee must spend at least $399 per month on local marketing. Starting in the thirteenth month, this requirement shifts to a minimum of 4% of the franchisee's gross receipts annually, spent on local marketing. These expenditures must be made directly by the franchisee for each territory they own.
Local marketing for Caring Transitions includes marketing, advertising, promotion, and public relations activities within the franchisee's territory. This covers direct costs for purchasing marketing materials, promotional items, out-of-pocket expenses for advertising and sales promotion, media placement charges, advertising agency fees, search engine optimization expenses, and cash payments. However, Caring Transitions retains the right to specify which promotional activities and costs qualify as local marketing, potentially excluding items like promotional coupons, cash donations, the cost of products or services donated to charities, national branding fees, and employee salaries.
Caring Transitions franchisees need to furnish an itemized report of their local marketing expenditures each month upon the franchisor's request. Failure to meet the minimum local marketing spending requirements constitutes a default of the Franchise Agreement. In such cases, the franchisee has the right to rectify the default by paying the difference between the minimum required amount and their actual spending to the National Branding Fund within one month of receiving notice from Caring Transitions. This ensures that franchisees are actively promoting their Caring Transitions business within their local territory, contributing to brand awareness and business growth.