How does the Caring Transitions initial franchise fee (Item 5) relate to the overall success of the franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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We presently offer a rebate program called "The Winners' Circle" for new Caring Transitions owners that meet our qualifications and that achieve certain revenue goals. For qualifying owners, we will rebate $10,000 of the franchise fee they paid if they attain cumulative gross receipts of at least $900,000 during the two-year period after the Commencement Date; we will rebate an additional $10,000 of the franchise fee if they received the first rebate and attain cumulative gross receipts of at least $1,600,000 during the three-year period after the Commencement Date; we will rebate an additional $10,000 of the franchise fee if they received the first two rebates and attain cumulative gross receipts of at least $2,300,000 during the four-year period after the Commencement Date; and we will rebate the remainder of the franchise fee they paid if they received the first three rebates and attain cumulative gross receipts of at least $3,100,000 during the five-year period after the Commencement Date. The "Commencement Date" is the first day of the month following the month in which the training program for new owners is completed. If the owner fails to achieve any one of these revenue goals, then he or she will not be eligible to receive any additional rebate. To be eligible for any rebate, the owner must strictly comply with all obligations to us, including timely reporting all gross receipts and paying all royalties and fees required by the franchise agreement, must have attended all franchise system national conferences and regional conferences and all required on-site training centers, must sign a general release, and must have strictly complied with all other material terms and conditions of each agreement and instrument between us. If the Franchise Agreement is
1 All dollar figures refer to U.S. Dollars.
terminated for any reason prior to the end of its initial term, then Franchisee must return all rebates to Franchisor, if any. NOTE: The revenue goals above are not to be construed as projections or estimates of actual or potential earnings, sales, or receipts. We make no representation that you or any other Caring Transitions owner has or will be able to achieve any of the revenue goals required to receive a rebate under this program. We reserve the right to cancel or modify this rebate program at any time, but owners who have already been accepted into The Winners' Circle will be permitted to complete the prog
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, the initial franchise fee is directly tied to a franchisee's potential to achieve significant revenue milestones through the "The Winners' Circle" rebate program. New Caring Transitions franchisees who meet the qualifications and achieve specific revenue goals within certain time frames can receive rebates on their initial franchise fee. This program serves as an incentive for franchisees to strive for high performance and adhere to the franchisor's standards. The initial franchise fee for a territory with a population between 175,000 and 200,000 is $53,900. If the territory population exceeds 200,000, an additional $500 is charged for every 1,000 people (or part thereof) over that threshold.
Specifically, the "The Winners' Circle" program offers a rebate of $10,000 of the initial franchise fee if a franchisee attains cumulative gross receipts of at least $900,000 during the two-year period after the Commencement Date. An additional $10,000 rebate is available if the franchisee, having received the first rebate, achieves cumulative gross receipts of at least $1,600,000 during the three-year period after the Commencement Date. Further, another $10,000 rebate is provided if the franchisee, having received the first two rebates, attains cumulative gross receipts of at least $2,300,000 during the four-year period after the Commencement Date. Finally, the remainder of the franchise fee is rebated if the franchisee, having received the first three rebates, attains cumulative gross receipts of at least $3,100,000 during the five-year period after the Commencement Date. The Commencement Date is defined as the first day of the month following the completion of the new owner's training program.
To be eligible for any rebate under "The Winner's Circle" program, a Caring Transitions franchisee must strictly comply with all obligations to the franchisor. This includes timely reporting of all gross receipts, paying all royalties and fees as required by the franchise agreement, attending all franchise system national and regional conferences, completing all required on-site training centers, signing a general release, and strictly complying with all other material terms and conditions of each agreement and instrument between the franchisee and Caring Transitions. If a franchisee fails to achieve any one of these revenue goals, they will not be eligible to receive any additional rebate. If the Franchise Agreement is terminated for any reason prior to the end of its initial term, then the franchisee must return all rebates to the franchisor, if any.
Caring Transitions emphasizes that these revenue goals are not to be construed as projections or estimates of actual or potential earnings, sales, or receipts. The franchisor makes no representation that any Caring Transitions owner has or will be able to achieve the revenue goals required to receive a rebate under this program. Furthermore, Caring Transitions reserves the right to cancel or modify this rebate program at any time, although owners who have already been accepted into The Winners' Circle will be permitted to complete the program.