What are Caring Transitions franchisees prohibited from doing in another franchisee's territory?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
rovision of this agreement.
- 1.10 Marketing and Solicitation Restrictions. Except as permitted by section 1.4, 1.5, or 8.6, Franchisee shall not directly or indirectly: (i) engage in advertising, marketing, or promotional activities in, or that are directed or targeted primarily to, the protected territory of another Caring Transitions franchisee; or (ii) conduct in-person assessments, provide Permitted Products and Services, or provide products and services that compete with Permitted Products and Services, in the protected territory of any other Caring Transitions franchisee. Any violation of any of the restrictions of this section by Franchisee will constitute a material default of this Franchise Agreement. Within 10 days after receiving written notice of such violation, Franchisee shall remit to Franchisor all Gross Receipts earned or received from any activities prohibited by this section. If Franchisee receives a request for services to be provided in the protected territory of another Caring Transitions franchisee, then Franchisee shall promptly notify such other franchisee of the request and provide appropriate contact information for the potential client.
ARTICLE 2
TERM AND RENEWAL
- 2.1 Initial Term. Except as otherwise provided, the term of this Agreement shall commence on the Effective Date (as defined in the last paragraph of this Agreement) and expire on the tenth anniversary of the Effective Date (the "Expiration Date").
- 2.2 Renewal. Except as provided in Section 2.3, Franchisee's right to operate the Franchised Business under this Agreement terminates at the Expiration Date. Franchisee may, at its option, renew the license granted under this Agreement for two additional consecutive terms of ten years each, provided that Franchisee complies with the following requirements:
- (a) Franchisee shall give Franchisor written notice of its election to renew at least six months, but not more than one year, before the Expiration Date;
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, franchisees face specific restrictions regarding activities within another franchisee's protected territory. Except as explicitly permitted, a Caring Transitions franchisee is prohibited from providing or selling products or services in another franchisee's designated territory. This restriction is subject to Sections 1.4 through 1.10 and 8.6 of the franchise agreement, indicating that certain exceptions and conditions apply. These sections likely outline specific circumstances, such as national accounts or approved marketing activities, under which a franchisee may operate outside their own territory.
Specifically, franchisees are barred from engaging in advertising, marketing, or promotional activities that primarily target another Caring Transitions franchisee's protected territory. They are also prohibited from conducting in-person assessments or providing any products or services that compete with the permitted products and services within another franchisee's territory. If a franchisee receives a service request that falls within another franchisee's protected area, they are obligated to promptly notify the other franchisee and provide the potential client's contact information.
Violating these restrictions constitutes a material breach of the Franchise Agreement. In such cases, the franchisee must remit all gross receipts earned from the prohibited activities to Caring Transitions. These territorial restrictions do not extend to the solicitation of employees, meaning franchisees can still advertise for and solicit employees in another franchisee's territory. Prospective franchisees should carefully review Sections 1.4 through 1.10 and 8.6 of the franchise agreement to fully understand the scope of these restrictions and any exceptions that may apply.