What is the geographic limit within which a Caring Transitions franchisee is restricted from operating a Competitive Business near another franchisee's territory?
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 Caring Transitions Franchise Disclosure Document, a franchisee is restricted from operating a Competitive Business within a specific geographic boundary. During the Restrictive Period, which begins on the expiration or termination of the Franchise Agreement and lasts for two years, a franchisee cannot own, maintain, operate, engage in, or have any interest in a Competitive Business within 15 miles of the geographical boundaries of any other Caring Transitions franchisee's protected territory. This restriction applies unless authorized under another franchise agreement with Caring Transitions.
This non-compete clause also prevents a franchisee from being employed by or engaged on a self-employed basis in a Competitive Business within the same 15-mile radius of another Caring Transitions franchisee's protected territory. Additionally, franchisees are prohibited from diverting or attempting to divert any business or client of the Franchised Business to a Competitive Business or having commercial dealings with anyone who was a client of the Franchised Business in the year before the Restrictive Period began.
The term "Competitive Business" is broadly defined to include any business that offers similar products or services to Caring Transitions, uses trade secrets to the disadvantage of Caring Transitions or its franchisees, or provides alternatives to the services offered by Caring Transitions. This definition ensures that franchisees cannot circumvent the non-compete agreement by engaging in businesses that indirectly compete with Caring Transitions.
These restrictions are designed to protect Caring Transitions' business interests and the interests of its franchisees by preventing unfair competition within a defined geographic area. Prospective franchisees should carefully consider these restrictions and their potential impact on future business opportunities before entering into a franchise agreement with Caring Transitions.