What is the geographic limit within which a Caring Transitions franchisee is restricted from being employed by a Competitive Business?
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
(5) divert or attempt to divert any business or client of the Franchised Business to a Competitive Business or, for the benefit of a Competitive Business, have any commercial dealings with or solicit the custom of anyone who was a client of or received services from the Franchised Business at any time during the one-year period prior to the beginning of the Restrictive Period; or
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to the 2025 FDD, a Caring Transitions franchisee is restricted from being employed by, or 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 the franchisee's territory. This restriction applies during a period starting from the termination or expiration of the franchise agreement and extends for two years thereafter.
This non-compete clause also extends to being employed by or engaged in a Competitive Business within 15 miles of any other Caring Transitions franchisee's protected territory. This measure aims to prevent franchisees from leveraging their knowledge and experience gained within the Caring Transitions system to benefit a competing business, potentially drawing customers away from the Caring Transitions network.
The FDD defines a "Competitive Business" broadly, including businesses that offer similar products or services to Caring Transitions, those that could utilize Caring Transitions' trade secrets, or those that are otherwise competitive with Caring Transitions franchises. This broad definition underscores the importance of understanding the full scope of activities that could be considered a breach of the non-compete agreement.
Prospective franchisees should carefully consider these restrictions and how they might impact their future career options if they decide to leave the Caring Transitions system. It would be prudent to seek legal counsel to fully understand the implications of these covenants and to negotiate potential modifications if necessary.