Does Caring Transitions lease office facilities from a related party?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
change in the lease liability | (115,702) | (162,745) | (137,249) | | Non-cash portion of lease expense | $ 5,721 | (944) | 1,350 |
4. RELATED PARTY TRANSACTIONS:
The Company leases office facilities from a related party under an agreement as disclosed in Note 3
The Company shares its phone service, utilities, office supplies, and copier with other related parties that are owned by its shareholder. Each month the company that pays an expense will bill the other entities for its portions. The reimbursements for such costs have been recorded in the specific expense categories. In addition, the Company contracts with a related party for its leased employees.
C. T. Franchising Systems, Inc. Notes to the Financial Statements December 31, 2024, 2023 and 2022
During 2024, 2023 and 2022, the Company incurred leased employee wages and related expenses from a related party of $3,509,876, $2,713,448, and $2,463,126, respectively. During 2024, 2023 and 2022, the Company also paid marketing expenses of $273,000, $271,250, and $271,250, respectively, to related parties.
Amounts due from related parties in accounts receivable totaled $3,191 and $14,275 at December 31, 2024 and 2022, respectively. There were no receivables from related parties at December 31, 2023.
Amounts due to related parties in accounts payable totaled $337 at December 31, 2024. There were no amounts due to related parties at December 31, 2023 and 2022.
C.T. FRANCHISING SYSTEMS, INC Franchisee List December 31, 2024
As of the above date, there are a total of 379 Caring Transitions franchises of a type substantially similar to the Caring Transitions franchises offered in this disclosure document, 372 of which are operational. The names, business addresses, and telephone numbers are listed below.
| ALABAMA | (928) 300-4229 | Little Rock, AR 72758 |
|---|---|---|
| Brandi Weaver | (501) 247-1887 | |
| 353 North Broadnax St, Ste 7 | Patricia Mazzeo | |
| Dadeville, AL 36853 | 1449 W. Bahia Court | Mark and Tara Piatt |
| (256) 269-0023 | Gilbert, AZ 85233 | 5 Candlewood Cove |
| (949) 892-9401 | Paragould, AR 72450 | |
| Robert and Kelley Massingill | (870) 476-0974 | |
| 905 Derbyshire Drive | Miguel Denga | |
| Dothan, AL | 16160 W Pima Street | Greg Wise8 |
| 36303 | ||
| (334) 547-7777 | Goodyear, AZ 85338 | 2901 S. Place, Apt. |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the company does lease office facilities from a related party. This arrangement is documented under an agreement, as noted in the financial statements.
Specifically, Caring Transitions rents office space from a related party, and as of March 1, 2024, they entered into a new operating lease agreement with a related party for office space. This lease agreement includes escalating monthly rent and is set to expire on May 31, 2028.
In 2024, 2023, and 2022, Caring Transitions' total operating lease expenses amounted to $151,909, $147,877, and $140,779, respectively. This indicates a consistent cost associated with leasing office space. Additionally, Caring Transitions shares expenses such as phone service, utilities, office supplies, and copier costs with related parties owned by its shareholder, with reimbursements recorded in the respective expense categories.
Prospective franchisees should be aware of these related-party transactions, as they could influence the financial performance and transparency of Caring Transitions. It is advisable to inquire about the terms of these leases and shared expenses to fully understand their potential impact on the franchise's operations and profitability.