What is the geographic scope of the non-compete agreement for Caring Transitions franchisees regarding Shared Referral Sources?

According to Caring Transitions' 2025 Franchise Disclosure Document, the non-compete agreement restricts franchisees from soliciting referrals from shared referral sources within a specific geographic area. Specifically, franchisees are prohibited from promoting, selling, procuring, providing, or soliciting referrals for any products or services offered in the franchised business from any shared referral sources. This restriction applies within 15 miles of the geographical boundaries of the franchisee's territory or any other Caring Transitions franchisee's territory.

This means that a Caring Transitions franchisee cannot actively seek business from referral sources that are also used by other franchisees within a 15-mile radius of either their own or another franchisee's territory. This restriction is in place to protect each franchisee's market and prevent unfair competition between franchisees within the Caring Transitions system. The non-compete applies unless authorized under another franchise agreement between the franchisee (or Covenantor) and Caring Transitions, including a successor agreement upon renewal of the franchise.

This restriction remains in effect even after the expiration, termination, or transfer of the franchise agreement. This extended restriction ensures that franchisees do not exploit referral relationships established during the franchise term to compete with Caring Transitions after leaving the system. Prospective franchisees should carefully consider the implications of this non-compete agreement, particularly if they plan to operate another similar business after their Caring Transitions franchise agreement ends. Understanding the geographic scope and duration of these restrictions is crucial for making an informed investment decision.