What happens if a Caring Transitions franchisee operates outside their territory after being notified by Caring Transitions?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
You do not acquire any rights to any areas outside your territory and you must immediately stop operating your franchise in areas outside your territory upon notification from us.
Although we are not obligated to do so under the franchise agreement, we may permit you to operate your franchise in areas outside your territory that are not part of another Caring Transitions franchisee's territory. We may, in our discretion, allow you to continue serving existing clients located in areas outside your territory after such area later becomes part of another franchisee's territory, but you must stop soliciting and serving new clients in any such area. Similarly, earlier Caring Transitions franchisees may have operated their franchises in areas that later became part of your territory; if so, they will be permitted to continue to provide services in your territory to clients they already had in your territory before you opened your franchise, but they will be prohibited from soliciting and serving any new clients in your territory once you open your franchise. In addition, we may permit you to operate in the territory of a franchisee that has been provided written notification of a default under
the franchise agreement and who has not cured the default within 30 days. In this event, the exclusivity of the defaulting franchisee's territory could, in our discretion, be suspended until the default is cured.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, franchisees do not have rights to operate outside of their designated territory. Upon notification from Caring Transitions, a franchisee must immediately cease operating their franchise in areas outside their territory.
Caring Transitions may allow franchisees to continue serving existing clients in areas that later become part of another franchisee's territory, but the franchisee must stop soliciting and serving new clients in that area. Similarly, earlier Caring Transitions franchisees may have operated in areas that later became part of a new franchisee's territory and may be permitted to continue to provide services to existing clients, but they are prohibited from soliciting and serving new clients in the new franchisee's territory.
Caring Transitions may permit a franchisee to operate in the territory of a franchisee that has been provided written notification of a default under the franchise agreement and who has not cured the default within 30 days. In this event, the exclusivity of the defaulting franchisee's territory could, in Caring Transitions's discretion, be suspended until the default is cured. These stipulations are important for prospective franchisees to understand, as they define the boundaries within which they can operate and the potential consequences of violating those boundaries.