What is the initial franchise fee for a Caring Transitions franchise used for?

According to Caring Transitions's 2025 Franchise Disclosure Document, the initial franchise fee is non-refundable and is fully earned when the franchise agreement is signed. This fee serves as consideration for the administrative and other expenses that Caring Transitions incurs while granting the franchise and investigating the franchisee's qualifications. It also compensates Caring Transitions for the lost or deferred opportunity to franchise to other potential franchisees. In essence, the initial franchise fee covers Caring Transitions's costs associated with setting up a new franchisee and foregoing other potential franchising opportunities.

For a territory with a population between 175,000 and 200,000, the initial franchise fee is $53,900. However, this fee can increase if the territory's population exceeds 200,000. In such cases, an additional $500 is charged for every 1,000 people (or part thereof) over 200,000. For example, a territory with a population of 206,135 would incur a total franchise fee of $57,400, calculated as $53,900 plus an additional $3,500 (7 x $500) for the excess population.

Caring Transitions also offers a rebate program called "The Winners' Circle" where new owners can potentially recover portions of their initial franchise fee by achieving certain revenue goals within specific timeframes. For example, an owner can receive a $10,000 rebate by attaining cumulative gross receipts of at least $900,000 during the two-year period after the Commencement Date. Further rebates are available for higher revenue milestones, up to a full rebate of the initial franchise fee for cumulative gross receipts of at least $3,100,000 during the five-year period after the Commencement Date. However, eligibility for these rebates is contingent upon strict compliance with all obligations to Caring Transitions, including timely reporting of gross receipts, payment of royalties and fees, attendance at conferences and training, and adherence to all material terms of the franchise agreement.

Prospective franchisees should note that the initial franchise fee is generally non-refundable, even if the franchise agreement is terminated. However, Caring Transitions may cancel the franchise agreement if, at any time during or within 15 days after the initial training program, they determine that the franchisee lacks the necessary aptitude, abilities, or personal characteristics to successfully operate a Caring Transitions franchise. In such cases, the initial franchise fee will not be refunded. This highlights the importance of carefully assessing one's suitability for the Caring Transitions franchise model before committing to the investment.