Are Caring Transitions franchisees required to contribute to a national advertising fund?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
As required in Section 5.2, Franchisee shall contribute a National Branding Fee to a national advertising fund established by Franchisor pursuant to Section 11.3 below.
Franchisor shall, for each of its company-owned locations (if any), pay National Branding Fees on the same basis as other franchisees within the System.
All National Branding Fees shall be payable on or before the fifth day of each month.
Franchisee is not obligated to pay the National Branding Fee until the fifth day of the second calendar month immediately following the month in which Franchisee or the Designated Individual completes the initial training program required by Section 7.1, unless: (1) Franchisee has operated a Caring Transitions franchise under another franchise agreement with an effective date at least six months earlier than the Effective Date of this Agreement; or (2) Franchisee acquired the Territory from another Caring Transitions franchisee.
Franchisor reserves the right to increase the amount of the National Branding Fee at any time in its sole discretion.
Any increase in the National Branding Fee shall be effective thirty days after Franchisee's receipt of written notice thereof.
Franchisee shall pay (to Franchisor or to the Fund, as the case may be) a late fee of $100.00 or 10% of the amount due, whichever is greater, on any payment (including, without limitation, amounts due for Royalties, National Branding Fees, or goods or services provided by the Fund, by Franchisor or any affiliate of Franchisor) that is not received by Franchisor within five days after the due date.
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 a national advertising fund. Specifically, franchisees must pay a "National Branding Fee" to a national advertising fund established by Caring Transitions. These fees are due on the fifth day of each month. However, franchisees are not required to pay the National Branding Fee until the fifth day of the second calendar month after completing the initial training program. There are exceptions to this deferral if the franchisee previously operated a Caring Transitions franchise or acquired the territory from another franchisee.
Caring Transitions may establish regional advertising funds in addition to the national fund. The funds are intended to increase public recognition of the Caring Transitions brand for the benefit of all franchisees. The franchisor contributes to the advertising funds on the same basis as franchisees for any company-owned locations.
Caring Transitions retains the right to increase the National Branding Fee at its discretion, with any increase becoming effective 30 days after the franchisee receives written notice. Failure to make timely payments results in a late fee of $100 or 10% of the amount due, whichever is greater. Payments not received within thirty days after the due date accrue interest at a rate of 18% per annum, or the highest rate allowed by law.