Does Caring Transitions grant an exclusive territory to its franchisees?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the franchise granted hereunder is otherwise non-exclusive and is granted subject to the terms and conditions of Sections 1.4 through 1.10 and 8.6 of this agreement.
Except as expressly described in this paragraph, Franchisee does not have any "exclusive territory" or any "exclusive," "protected," or "reserved" territorial or similar rights, and there is and will be no limitation on Franchisor's rights to locate and consent to the location of other Caring Transitions Franchises or other facilities of any type at any location, regardless of the distance from, impact on, or vicinity of, the franchised business or the number of Caring Transitions Franchises in an area or market.
Except as permitted by Sections 1.4 and 1.5 below, Franchisee may not provide or sell products or services in a franchise territory granted to another franchisee of the System.
The territorial protection granted under this Section does not extend to the solicitation of employees, and nothing in this agreement prohibits other franchisees of Franchisor from advertising for and soliciting employees in Franchisee's Territory.
Franchisee's right to exclusively operate the franchised business within Franchisee's Territory (subject to Sections 1.4 and 1.5 below) shall begin once Franchisee has completed Franchisor's initial training program (see Section 7.1 below) and the franchised business has become fully operational.
- 1.4 National Accounts.
The rights granted to Franchisee by this agreement do not include the exclusive right to offer or provide products or services to National Accounts, and National Accounts are hereby specifically excluded from Franchisor's territorial restrictions in Section 1.3 above.
Franchisee acknowledges that other franchisees of the System may provide products and services to National Accounts at or from locations in Franchisee's Territory.
With Franchisor's prior written consent, Franchisee may provide products and services to National Accounts at or from locations in a franchise territory granted to another franchisee of the System.
A "National Account" means a special customer (which may be, but is not limited to, a national or regional customer, other large business, or government agency) designated as such by Franchisor from time-to-time in its business judgment.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory, but they are granted territorial protection under specific conditions. The franchise agreement states that franchisees acknowledge the non-exclusive nature of the franchise, subject to certain sections of the agreement.
Specifically, franchisees do not have an "exclusive territory" or any similar rights that would limit Caring Transitions' ability to establish other franchises or facilities, regardless of their proximity to the franchisee's business. However, franchisees are restricted from providing or selling products or services in another franchisee's protected territory, with exceptions outlined in Sections 1.4 and 1.5 of the agreement. This territorial protection begins after the franchisee completes the initial training program and the business becomes fully operational.
There are exceptions to the territorial protections. Caring Transitions franchisees do not have exclusive rights to offer services to National Accounts or solicit referrals from Shared Referral Sources, and these are excluded from territorial restrictions. Other franchisees may provide services to National Accounts or solicit Shared Referral Sources within a franchisee's territory. These exceptions mean that while a franchisee has some territorial protection, Caring Transitions retains the right to service National Accounts and allow other franchisees to solicit Shared Referral Sources within that territory.