What happens to a Caring Transitions franchisee's eligibility for rebates if the Franchise Agreement is terminated?

According to Caring Transitions' 2025 Franchise Disclosure Document, if the Franchise Agreement is terminated for any reason before the end of its initial term, the franchisee must return all rebates to the franchisor, if any were received. This condition is part of the "Winner's Circle Program" addendum to the franchise agreement, which outlines the terms for potential rebates based on cumulative gross receipts.

This provision means that a Caring Transitions franchisee who has received rebates but whose agreement is terminated early for any reason (including failure to comply with the agreement) will be required to repay those rebates. This creates a financial risk for franchisees, as they could lose the benefits of the rebate program if the franchise is terminated before the end of its term.

To be eligible for any rebates, a Caring Transitions franchisee must strictly and timely comply with all obligations under any agreement with the franchisor throughout the entire rebate period. This includes timely reporting gross receipts and paying all royalties, national branding fees, technology fees, and other amounts due under the Franchise Agreement. Franchisees must also attend all franchise system national and regional conferences and required on-site training centers and execute a general release in a form prescribed by the franchisor before each rebate. Failure to meet these conditions can nullify the rebate addendum, in addition to any other remedies the franchisor may have.