What happens to the deposit if I proceed with purchasing the Caring Transitions franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
You can reserve a specific territory for up to 30 days by paying a $5,000 deposit and sending us a Remittance Form. The deposit is fully earned and non-refundable upon our receipt, in consideration of our reservation and removal from the market of your territory for 30 days, and will be applied toward your initial franchise fee. The required deposit to reserve a second territory is $10,
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, a prospective franchisee can reserve a specific territory for 30 days by paying a $5,000 deposit along with a Remittance Form. If the franchisee proceeds with the purchase, this deposit is applied toward the initial franchise fee. This means the $5,000 is not an additional cost, but rather a portion of the overall franchise fee paid in advance to secure the territory.
It is important to note that this deposit is considered fully earned and non-refundable by Caring Transitions upon receipt. This covers their costs for reserving the territory and removing it from the market for 30 days. Therefore, if a franchisee decides not to proceed with the franchise purchase after reserving the territory, the $5,000 deposit will not be returned.
This practice of applying a deposit towards the franchise fee is fairly common in the franchise industry. It allows both the franchisor and franchisee to demonstrate commitment while the franchisee completes their due diligence and makes a final decision. However, the non-refundable nature of the deposit is a standard term that prospective franchisees should carefully consider before making any payments.