What is the length of the Restrictive Period after termination of a Caring Transitions franchise agreement?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
and ending on the second anniversary thereof (the "Restrictive Period"), directly or indirectly, for him/herself or through, on behalf of, or in conjunction with a Covered Person:
- (1) except as may be authorized under another franchise agreement in effect between Franchisee (or Covenantor) and Franchisor (including a successor agreement upon the renewal of the Franchise granted under the Franchise Agreement), own, maintain, operate, engage in, or have any interest in a Competitive Business that is or is intended to be located, or that operates, in or within 15 miles of the geographical boundaries of Franchisee's Territory; or
- (2) except as may be authorized under another franchise agreement in effect between Franchisee (or Covenantor) and Franchisor (including a successor agreement upon the
renewal of the Franchise granted under the Franchise Agreement), own, maintain, operate, engage in, or have any interest in a Competitive Business that is or is intended to be located, or that operates, in or within 15 miles of the geographical boundaries of any other Caring Transitions Franchisee's protected territory; or
(3) be employed by, or be engaged on a self-employed basis in, a Competitive Business that is or is intended to be located, or that operates, in or within 15 miles of the geographical boundaries of Franchisee's Territory; or
(4) be employed by, or be engaged on a self-employed basis in, a Competitive Business that is or is intended to be located, or that operates, in or within 15 miles of the geographical boundaries of any other Caring Transitions Franchisee's protected territory; or
(5) divert or attempt to divert any business or client of the Franchised Business to a Competitive Business or, for the benefit of a Competitive Business, have any commercial dealings with or solicit the custom of anyone who was a client of or received services from the Franchised Business at any time during the one-year period prior to the beginning of the Restrictive Period; or
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the Restrictive Period lasts for two years following the termination of the franchise agreement. During this period, the franchisee is restricted from engaging in competitive business activities within a specified distance of their former territory or any other Caring Transitions franchise territory.
Specifically, the franchisee cannot own, operate, or have any interest in a Competitive Business within 15 miles of their former territory or any other Caring Transitions franchise territory. They are also prohibited from being employed by or engaged on a self-employed basis in a Competitive Business within the same 15-mile radius.
Furthermore, the franchisee is barred from diverting business or clients from the Franchised Business to a Competitive Business. They are also restricted from having commercial dealings with or soliciting customers who were clients of the Franchised Business within the year prior to the start of the Restrictive Period. These restrictions are designed to protect Caring Transitions' business interests and goodwill after a franchise agreement ends.