Which item in the Caring Transitions Disclosure Document discusses the franchisee's obligations for advertising?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
franchise automatically becomes our property, and we may use it or provide it to our other franchisees for their use without compensating you. There is no advertising council composed of franchisees that advises us on advertising policies or other matters.
Advertising Cooperatives. We may establish, change, dissolve, or merge local or regional marketing and advertising cooperatives in geographical areas with two or more Caring Transitions franchises. (Franchise Agreement § 11.11). Advertising cooperatives may be established for areas covered by advertising media relevant to particular geographic markets, Metropolitan or Micropolitan Statistical Areas, our industry or industry segment, or our advertising strategies, in our discretion. If we establish an advertising cooperative in an area, each franchise within the cooperative area must join and contribute to the cooperative each month. Your cooperative contribution will not be credited toward your national branding fee. Either we or the cooperative will determine the amount of your monthly contribution, but it cannot exceed 3% of your Gross Receipts unless a majority of the cooperative members agree on a higher contribution. The members of each cooperative will be responsible for its administration, subject to our approval. Each member of an advertising cooperative will have one vote per franchise. Each cooperative will operate from written governing documents and must prepare monthly financial statements, all of which will be available for its members' review. Each franchisor-owned location in an area in which an advertising cooperative has been established will contribute to the cooperative on the same basis as other members of that cooperative. As of the date of this disclosure document, we have not established any advertising cooperatives. [Item 20: OUTLETS AND FRANCHISEE INFORMATION]
Franchisee shall display the Marks in the manner prescribed by Franchisor on all signs and all other advertising and promotional materials used in connection with the franchised business.
Franchisee specifically acknowledges and agrees that the word "advertising" as used in this agreement includes, but is not limited to, signs (including signs on motor vehicles and the interior and exterior of the Premises), URLs, e-mail addresses, Internet listings, banners, advertisements, or other services or links on or with the Internet, World Wide Web, Internet service providers, email services, communication providers, search engines, and similar services.
- 11.9.
Web site.
Franchisee specifically acknowledges and agrees that any Web site (as defined below) will be deemed "advertising" under this agreement, and will be subject to (among other things) Franchisor's approval under this Article 11.
As used in this agreement, the term "Web site**"** means an interactive electronic document, series of symbols, or otherwise, that is contained in a network of
computers and/or other devices linked by communications software and includes, but is not limited to, social media pages and web logs. The term Web site includes, but is not limited to, Internet and World Wide Web home pages, social media pages, and web logs. In connection with any Web site, Franchisee agrees to the following:
- (a) Franchisor shall have the right, but not the obligation, to establish and maintain a Web site, which may, without limitation, promote the Marks, the System, any or all of the Permitted Products and Services, and/or the offer and sale of Caring Transitions franchises.
Franchisee shall use all Web sites relating to the franchised business required by Franchisor.
Franchisor shall have the sole right to control all aspects of the Web site, including, but not limited to, its design, content, functionality, links to the Web sites of third parties, legal notices, and policies and terms of usage.
Franchisor shall also have the right to discontinue the operation of the Web site at any time in its business judgment.
- (b) Franchisee shall not directly or indirectly establish, maintain, or operate a separate Caring Transitions Web site without Franchisor's prior written consent.
[Item 20: OUTLETS AND FRANCHISEE INFORMATION]
Franchisor shall also have the right to discontinue the operation of the Web site at any time in its business judgment.
- (b) Franchisee shall not directly or indirectly establish, maintain, or operate a separate Caring Transitions Web site without Franchisor's prior written consent.
Any Caring Transitions Web site established, maintained, or operated by Franchisee must contain a link to and from Franchisor's Web site and Franchisor has the right to require modifications of the content, appearance, and format of Franchisee's Caring Transitions Web site.
The term "Caring Transitions Web site" means a Web site that displays any of the Marks, or which relates to the franchised business, franchisor, the System, or any business that offers or sells products or services that compete with any products or services offered by Caring Transitions franchises.
(c) Franchisee shall not, without Franchisor's prior written consent, establish or permit or aid any other person to establish any link to any Web site or any other electronic or computergenerated advertising or communication arrangement that Franchisor may establish or that is related to the franchised business.
(d) Franchisor shall have the right, but not the obligation, to designate one or more Web page(s) to describe Franchisee, the franchised business, and/or Franchisee's location, with any such Web page(s) to be located within Franchisor's Web site, or to provide Franchisee with a separate Caring Transitions Web site or page(s) for such purposes.
Franchisee shall comply with Franchisor's policies with respect to the creation, maintenance, and content of any such Web pages, and may be responsible for hosting such Web pages.
Franchisor shall retain ownership in and have the right, in its business judgment, to limit, reassign, and/or discontinue the content and/or operation of such Web site and Web pages.
- (e) Franchisor makes no representations about any Web site that it may provide or make available to Franchisee, including, without limitation, the Web site's suitability, reliability, or availability.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 21–22)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, Item 20 and Item 11 both discuss the franchisee's obligations regarding advertising. Item 20 specifies that franchisees must display the Caring Transitions' marks in accordance with the franchisor's guidelines on all advertising and promotional materials. This includes signs, URLs, email addresses, and internet listings. The agreement also states that any website will be considered advertising and is subject to the franchisor's approval. Franchisees cannot establish a separate Caring Transitions website without prior written consent from the franchisor.
Item 20 also states that Caring Transitions has the right to designate webpages to describe the franchisee and their location on the franchisor's website. The franchisee must comply with the franchisor's policies regarding the creation, maintenance, and content of these webpages. Caring Transitions retains ownership and has the right to limit, reassign, or discontinue the content and operation of the website.
Item 11 outlines that Caring Transitions may establish advertising cooperatives in areas with two or more franchises. If a cooperative is established, each franchise within the area must join and contribute monthly, with contributions not exceeding 3% of gross receipts unless a majority of members agree to a higher amount. These cooperatives are responsible for their administration, subject to Caring Transitions' approval, and must provide monthly financial statements for member review. The franchisor also states that there is no advertising council composed of franchisees that advises them on advertising policies or other matters.
For a prospective franchisee, these stipulations mean that Caring Transitions maintains significant control over advertising and online presence. Franchisees need to be aware of the costs associated with advertising cooperatives and the limitations on creating independent websites or online marketing efforts. It is important to understand the franchisor's policies and guidelines for advertising to ensure compliance and avoid potential conflicts.