How should Caring Transitions franchisees contribute to the national Fund?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Franchisee shall contribute to the national Fund by electronic funds transfer payable to "Caring Transitions National Branding Fund" or such other designation as Franchisor may from time to time prescribe.
All sums paid by Franchisee to the Funds shall be maintained in an account separate from the other moneys of Franchisor.
Franchisee contributions may not be used to defray any of Franchisor's operating expenses, except for such reasonable salaries, overhead, and administrative, accounting, legal (including, without limitation, the defense of any claims against Franchisor and/or Franchisor's designee regarding the management of the Funds) and other costs, if any, as Franchisor may incur in activities reasonably related to the administration or direction of the Funds or advertising programs for Caring Transitions franchisees, including the costs of enforcing contributions to the Funds required under this agreement and the costs of preparing a statement of operations.
The Funds and all earnings thereof shall not otherwise inure to the benefit of Franchisor.
- (e) It is anticipated that all franchisee contributions to and earnings of the Funds will be spent for advertising and/or promotional purposes during the taxable year within which the contributions are made.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees are required to contribute to the national fund via electronic funds transfer. These payments should be made to "Caring Transitions National Branding Fund" or any other designation that Caring Transitions prescribes.
All funds paid by Caring Transitions franchisees are to be kept in a separate account, distinct from the franchisor's other monies. These franchisee contributions cannot be used to cover Caring Transitions' operating expenses. However, the funds may be used for reasonable salaries, overhead, administrative, accounting, and legal costs that Caring Transitions incurs while administering the fund or advertising programs for franchisees. This includes the costs associated with enforcing contributions to the fund and preparing statements of operations.
The FDD anticipates that all franchisee contributions to the fund, along with any earnings, will be used for advertising and promotional purposes during the taxable year in which the contributions are made. This suggests that the fund is intended to be actively used to support the Caring Transitions brand and its franchisees through marketing efforts.