What is the Caring Transitions Franchisor's discretion regarding the advertising funds?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
at all times.
ARTICLE 11
ADVERTISING
11.1. Control of Advertising. Recognizing the value of advertising and the importance of consistency of advertising and promotion to the furtherance of the goodwill and public image of the System and the Marks, the parties agree that Franchisor shall conduct, determine, maintain, and administer all national and regional advertising funds that are or may hereafter be established pursuant to Article 11 of this
agreement, and shall have sole discretion over the concepts, materials, media, type, nature, scope, frequency, place, form, copy, layout and content of all national, regional, and local advertising.
- 11.2. National Branding Fee. 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.
- 11.3. Administration of Funds. Franchisor may establish one or more regional advertising funds and designate any geographical area as a region for establishing regional advertising funds, and/or a national advertising fund (the "Funds"), which shall be maintained and administered as follows:
- (a) The Funds are intended to maximize general public recognition and acceptance of the Marks for the benefit of all franchises within the System or within a region, as the case may be. Franchisor is not obligated in administering the Funds to make expenditures for Franchisee that are equivalent or proportionate to Franchisee's contribution, to ensure that any particular Franchisee benefits directly or pro rata from the placement of advertising, or to spend equal or pro rata amounts on each Caring Transitions franchisee.
- (b) The Funds, all contributions thereto, and any earnings thereon, shall be used exclusively to meet any and all costs of maintaining, administering, researching, directing and preparing advertising and/or promotional activities, developing new public relations campaigns and new advertising, promotional and marketing materials for the System and for franchisees in the System.
- (c) Franchisor shall, for each of its company-owned locations (if any), contribute to the Funds on the same basis as assessments required of comparable franchisees within the System.
- (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.
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 sole discretion over the advertising funds. Caring Transitions will conduct, determine, maintain, and administer all national and regional advertising funds. This includes complete control over the concepts, materials, media, type, nature, scope, frequency, place, form, copy, layout, and content of all national, regional, and local advertising.
Caring Transitions is not obligated to ensure that expenditures for a franchisee are equivalent or proportionate to the franchisee's contribution. They are also not obligated to ensure that any franchisee benefits directly or pro rata from the placement of advertising, or to spend equal or pro rata amounts on each Caring Transitions franchisee. The funds are intended to maximize general public recognition and acceptance of the marks for the benefit of all franchises within the system or within a region.
The funds, all contributions, and any earnings will be used exclusively to meet the costs of maintaining, administering, researching, directing, and preparing advertising and promotional activities. This also includes developing new public relations campaigns and new advertising, promotional, and marketing materials for the system and its franchisees. Franchisee contributions may be used to defray reasonable salaries, overhead, and administrative, accounting, and legal costs related to the administration of the funds or advertising programs, including the costs of enforcing contributions and preparing a statement of operations. The funds and all earnings thereof shall not otherwise benefit Caring Transitions.
Franchisee acknowledges and agrees that any and all copyrights in and to contracts, forms, advertising, marketing, promotional public relations, or sales concepts, plans, programs, activities, or materials proposed or developed by or on behalf of Franchisee that are used in the Franchised Business or that bear any of the Marks will be the sole property of Franchisor, and Franchisee shall execute such documents (and, if necessary, require its independent contractors to execute such documents) as may be deemed reasonably necessary by Franchisor to give effect to this provision.