How does the Caring Transitions Franchisor determine the geographical areas for regional advertising funds?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
to Franchisee.
- 11.11. Advertising Cooperative. Franchisor may, in its discretion, designate any geographical area in which at least two Caring Transitions franchises are located for the purpose of establishing a local or regional marketing and advertising cooperative ("Cooperative"). Franchisee shall take appropriate steps to establish and participate in a Cooperative if required to do so by Franchisor. If a Cooperative for the geographical area in which the franchised business is located has already been established when Franchisee opens the franchised business, then Franchisee shall immediately become a member of the Cooperative under the terms of its governing documents. If a Cooperative for the geographical area in which the franchised business is located is established during the term of this agreement, Franchisee shall immediately become a member of the Cooperative, and take all steps necessary to become a member. In no event shall Franchisee be required to be a member of more than one Cooperative for the franchised business established under this agreement. The following provisions apply to each Cooperative:
- (a) Each Cooperative will be organized and governed in a form and manner prescribed or approved by Franchisor in writing, and will commence operations on a date specified by Franchisor.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, Caring Transitions has the discretion to designate any geographical area with at least two Caring Transitions franchises for establishing a local or regional marketing and advertising cooperative.
If Caring Transitions requires it, franchisees must take the necessary actions to establish and participate in these cooperatives. If a cooperative already exists in the franchisee's geographical area when they start their franchise, they must immediately join it under the cooperative's governing terms. Similarly, if a cooperative is established in the franchisee's area during the term of their agreement, they must also immediately join it and take all necessary steps to become a member.
However, franchisees will not be required to be a member of more than one cooperative for their franchised business under the agreement. Caring Transitions also has the right to terminate any Cooperative, and any unexpended monies from the terminated Cooperative will be used for advertising or promotional purposes for the Caring Transitions system.