What kind of advertising activities can the Caring Transitions Funds be used for?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
r to spend equal or pro rata amounts on each Caring Transitions franchisee.
- (b) The Funds, all contributions thereto, and any earnings thereon, shall be used exclusively to meet any and all costs of maintaining, administering, researching, directing and preparing advertising and/or promotional activities, developing new public relations campaigns and new advertising, promotional and marketing materials for the System and for franchisees in the System.
- (c) Franchisor shall, for each of its company-owned locations (if any), contribute to the Funds on the same basis as assessments required of comparable franchisees within the System.
- (d) Franchisee shall contribute to the national Fund by electronic funds transfer payable to "Caring Transitions National Branding Fund" or such other designation as Franchisor may from time to time prescribe. All sums paid by Franchisee to the Funds shall be maintained in an account separate from the other moneys of Franchisor. Franchisee contributions may not be used to defray any of Franchisor's operating expenses, except for such reasonable salaries, overhead, and administrative, accounting, legal (including, without limitation, the defense of any claims against Franchisor and/or Franchisor's designee regarding the management of the Funds) and other costs, if any, as Franchisor may incur in activities reasonably related to the administration or direction of the Funds or advertising programs for Caring Transitions franchisees, including the costs of enforcing contributions to the Funds required under this agreement and the costs of preparing a statement of operations. The Funds and all earnings thereof shall not otherwise inure to the benefit of Franchisor.
- (e) It is anticipated that all franchisee contributions to and earnings of the Funds will be spent for advertising and/or promotional purposes during the taxable year within which the contributions are made. If, however, excess amounts remain in the Funds at the end of such taxable year, all expenditures in the following taxable year(s) shall be made first out of accumulated earnings from previous years, next out of earnings in the current year, and finally from contributions.
- (f) Franchisor (and any designee of Franchisor) shall not have any direct or indirect liability or obligation to Franchisee, to the Funds, or otherwise with respect to the management, maintenance, direction, or administration of the Funds.
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 Funds are intended to maximize public recognition of the Caring Transitions brand for the benefit of all franchisees. The Funds can be used to cover the costs of maintaining, administering, researching, and preparing advertising and promotional activities. This includes developing new public relations campaigns, as well as new advertising, promotional, and marketing materials for both the Caring Transitions system and its franchisees.
Franchisee contributions to the Funds cannot be used to cover Caring Transitions' operating expenses. However, the contributions can be used for reasonable salaries, overhead, and administrative, accounting, and legal costs that Caring Transitions incurs while administering the Funds or advertising programs. This also includes the costs of enforcing contributions to the Funds and preparing a statement of operations. All franchisee contributions and earnings of the Funds are anticipated to be spent for advertising and/or promotional purposes during the taxable year in which the contributions are made.
Caring Transitions may establish local or regional marketing and advertising cooperatives in geographical areas where at least two Caring Transitions franchises are located. Franchisees are required to participate in these cooperatives if mandated by Caring Transitions. If a cooperative already exists when a franchisee opens their business, they must immediately become a member. Similarly, if a cooperative is established during the term of the agreement, the franchisee must join it. However, franchisees will not be required to be a member of more than one cooperative.