Can the Caring Transitions Funds be used for marketing materials?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
(e) It is anticipated that all franchisee contributions to and earnings of the Funds will be spent for advertising and/or promotional purposes during the taxable year within which the contributions are made.
(a) Minimum Local Marketing. Franchisee shall, during the first 12 months of operation, spend at least $399 a month (the "Minimum Local Marketing Amount"). In the thirteenth month of operation and thereafter, Franchisee shall spend at least 4% of its Gross Receipts on Local Marketing on an annual basis. Local Marketing expenditures must be made directly by Franchisee and must be paid for each Territory owned by Franchisee.
(b) "Local Marketing" means marketing, advertising, promotion, and public relations within the Territory, and consists only of direct costs to purchase marketing materials, promotion, out-of-pocket expenses for the cost of advertising and sales promotion (including media placement charges, advertising agency fees and expenses, search engine optimization expenses, and cash payments), and such other activities and expenses as Franchisor in its discretion may specify.
Franchisee shall display the Marks in the manner prescribed by Franchisor on all signs and all other advertising and promotional materials used in connection with the franchised business.
Franchisee specifically acknowledges and agrees that any Web site (as defined below) will be deemed "advertising" under this agreement, and will be subject to (among other things) Franchisor's approval under this Article 11.
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.
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, the Caring Transitions Funds can be used for marketing materials. Specifically, the Funds are intended to increase public recognition of the Caring Transitions brand for the benefit of all franchisees. These funds are used to cover the costs of preparing advertising, promotional activities, and marketing materials for the Caring Transitions system and its franchisees.
Franchisee contributions to the national fund are kept separate from the franchisor's other monies and cannot be used for the franchisor's operating expenses, except for reasonable costs related to administering the Funds or advertising programs. The FDD anticipates that all franchisee contributions and earnings of the Funds will be spent for advertising and promotional purposes during the taxable year in which the contributions are made.
In addition to the national fund, Caring Transitions franchisees are also required to engage in local marketing. During the first 12 months of operation, a franchisee must spend at least $399 a month on local marketing. After that, the franchisee must spend at least 4% of its gross receipts on local marketing annually. Local marketing includes the direct costs to purchase marketing materials and other advertising expenses.
Caring Transitions also maintains control over advertising and promotional materials. Franchisees must display the Caring Transitions marks in the manner prescribed by the franchisor on all advertising and promotional materials. Any websites are considered advertising and are subject to the franchisor's approval. All copyrights in advertising and marketing materials developed by the franchisee that bear any of the Caring Transitions marks will be the sole property of the franchisor.