Are the Funds assets of Caring Transitions?

According to Caring Transitions' 2025 Franchise Disclosure Document, the Funds are not considered assets of the Franchisor. The FDD states explicitly that "The Funds are not and shall not be assets of Franchisor." This means that the money contributed by franchisees into the Funds, along with any earnings generated, does not belong to Caring Transitions as a company.

The Funds are intended to be used exclusively for the benefit of the Caring Transitions franchise system and its franchisees. These funds are earmarked for maintaining, administering, researching, and directing advertising and promotional activities. They also support the development of new public relations campaigns and marketing materials for the entire Caring Transitions system. While Caring Transitions manages the Funds, they are obligated to keep them separate from their own operating accounts.

This separation of assets provides a level of financial security and transparency for franchisees. It ensures that contributions are used for their intended purpose—to promote the Caring Transitions brand and support the franchise network—rather than being absorbed into the general operating revenue of the Franchisor. Additionally, the FDD outlines that any excess amounts remaining in the Funds at the end of a taxable year must be used in subsequent years before new contributions are utilized, further safeguarding franchisee investments.