If postal codes change, who re-defines the Caring Transitions Territory boundaries?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
If for any reason the boundaries or numbers of any postal code(s) that comprise the Territory are moved, altered or eliminated, Franchisor shall re-define the boundaries of the Territory to correspond as nearly as possible, in Franchisor's sole and absolute discretion, to Franchisee's original Territory, and Franchisor's decision shall be final and binding upon both Franchisor and Franchisee.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the franchisor, C.T. Franchising Systems, Inc., has the authority to redefine territory boundaries if postal codes change. Specifically, if the postal codes that define a franchisee's territory are moved, altered, or eliminated, Caring Transitions will redefine the territory boundaries.
The FDD states that Caring Transitions will adjust the boundaries to correspond as closely as possible to the franchisee's original territory. This redefinition is made at Caring Transitions' sole and absolute discretion.
This means that a prospective Caring Transitions franchisee's territory is subject to change if postal codes are altered. The franchisee must accept Caring Transitions' decision regarding the new boundaries, as the FDD states that the franchisor's decision is final and binding. This could impact the franchisee's business if the territory is significantly reduced or altered in a way that is unfavorable to the franchisee.