What is the geographic limit within which a Caring Transitions franchisee is prohibited from owning or operating a competitive business, absent authorization under another franchise agreement?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
and ending on the second anniversary thereof (the "Restrictive Period"), directly or indirectly, for him/herself or through, on behalf of, or in conjunction with a Covered Person:
- (1) except as may be authorized under another franchise agreement in effect between Franchisee (or Covenantor) and Franchisor (including a successor agreement upon the renewal of the Franchise granted under the Franchise Agreement), own, maintain, operate, engage in, or have any interest in a Competitive Business that is or is intended to be located, or that operates, in or within 15 miles of the geographical boundaries of Franchisee's Territory; or
- (2) except as may be authorized under another franchise agreement in effect between Franchisee (or Covenantor) and Franchisor (including a successor agreement upon the
renewal of the Franchise granted under the Franchise Agreement), own, maintain, operate, engage in, or have any interest in a Competitive Business that is or is intended to be located, or that operates, in or within 15 miles of the geographical boundaries of any other Caring Transitions Franchisee's protected territory; or
(3) be employed by, or be engaged on a self-employed basis in, a Competitive Business that is or is intended to be located, or that operates, in or within 15 miles of the geographical boundaries of Franchisee's Territory; or
(4) be employed by, or be engaged on a self-employed basis in, a Competitive Business that is or is intended to be located, or that operates, in or within 15 miles of the geographical boundaries of any other Caring Transitions Franchisee's protected territory; or
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee is restricted from owning or operating a competitive business within a specific geographic radius. Specifically, a Caring Transitions franchisee cannot, unless authorized by another franchise agreement with the franchisor, own, maintain, operate, engage in, or have any interest in a Competitive Business that is or is intended to be located, or that operates, in or within 15 miles of the geographical boundaries of Franchisee's Territory. This restriction also applies to being employed by or engaged on a self-employed basis in a Competitive Business within the same 15-mile radius.
This non-compete clause extends not only to the franchisee's own territory but also to other Caring Transitions franchisees' protected territories. The franchisee is prohibited from owning or operating a competitive business within 15 miles of any other Caring Transitions franchisee's protected territory, unless authorized under another franchise agreement. This provision aims to prevent franchisees from directly competing with each other and protects the market share of each franchise location.
These restrictions are in place for a defined period, referred to as the "Restrictive Period," which begins upon the expiration or termination of the Franchise Agreement and extends for two years. The geographic and temporal restrictions are acknowledged by each Covenantor as reasonable and necessary to protect Caring Transitions' and the franchisee's business interests in the relevant markets. Prospective franchisees should carefully consider these limitations and how they might affect their future business opportunities after leaving the Caring Transitions system.