What is the initial minimum monthly royalty fee for a Caring Transitions franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
em 6. You must pay a monthly Royalty equal to the greater of 6% of actual Gross Receipts from the prior month or the Minimum Royalty. The Minimum Royalty is $300 a month for 12 months after the minimum royalty start date and then $500 a month. You are not required to pay the Minimum Royalty until the fifth day of the second month following the month in which you complete the training program held at our corporate headquarters. We will extend the Minimum Royalty start date for an additional month if you comply with System Standards for opening your business (including completing a business plan and recommended marketing activities), sign a general release, and are in full compliance with the Franchise Agre
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, franchisees must pay a monthly royalty fee. For the first 12 months after the minimum royalty start date, the minimum royalty is $300 per month. After this initial period, the minimum monthly royalty increases to $500. This royalty is calculated as 6% of the gross receipts from the previous month or the stated minimum, whichever is greater.
The minimum royalty start date is deferred until the fifth day of the second month following completion of the training program at Caring Transitions's corporate headquarters. Franchisees can extend this deferral by an additional month if they meet specific requirements. These requirements include complying with system standards for opening the business, such as completing a business plan and recommended marketing activities, signing a general release, and being in full compliance with the Franchise Agreement.
In practical terms, a new Caring Transitions franchisee will not be required to pay the minimum royalty immediately upon signing the agreement. This provides a ramp-up period to establish the business before the minimum royalty obligation begins. However, franchisees need to be aware of the conditions for extending the deferral, as meeting these standards can provide additional financial relief during the initial months of operation. The royalty is paid on gross receipts, which includes all revenue before deducting client distributions and other business costs.