Does Caring Transitions limit its rights to locate other Caring Transitions franchises near the franchised business?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the franchise granted hereunder is otherwise non-exclusive and is granted subject to the terms and conditions of Sections 1.4 through 1.10 and 8.6 of this agreement.
Except as expressly described in this paragraph, Franchisee does not have any "exclusive territory" or any "exclusive," "protected," or "reserved" territorial or similar rights, and there is and will be no limitation on Franchisor's rights to locate and consent to the location of other Caring Transitions Franchises or other facilities of any type at any location, regardless of the distance from, impact on, or vicinity of, the franchised business or the number of Caring Transitions Franchises in an area or market.
Except as permitted by Sections 1.4 and 1.5 below, Franchisee may not provide or sell products or services in a franchise territory granted to another franchisee of the System.
The territorial protection granted under this Section does not extend to the solicitation of employees, and nothing in this agreement prohibits other franchisees of Franchisor from advertising for and soliciting employees in Franchisee's Territory.
Franchisee's right to exclusively operate the franchised business within Franchisee's Territory (subject to Sections 1.4 and 1.5 below) shall begin once Franchisee has completed Franchisor's initial training program (see Section 7.1 below) and the franchised business has become fully operational.
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 franchise agreement grants franchisees a territory, but it is generally non-exclusive. Caring Transitions retains the right to locate other franchises or facilities at any location, regardless of proximity to an existing franchise.
However, franchisees are granted some territorial protections. Franchisees cannot offer or sell products or services in another franchisee's territory, except as permitted by sections 1.4 and 1.5 of the agreement, which relate to national accounts. Franchisees are also restricted from engaging in advertising or marketing activities targeted towards another franchisee's protected territory, or from conducting in-person assessments or providing services in another franchisee's territory, as outlined in sections 1.4, 1.5, and 8.6.
These restrictions do not prevent Caring Transitions from soliciting employees in a franchisee's territory. After the franchise has completed initial training and is fully operational, the franchisee has the right to exclusively operate within their territory, subject to the exceptions for national accounts and other provisions.
After the franchise agreement terminates, the franchisee is restricted for two years from operating a similar business within 15 miles of their former territory or any other Caring Transitions franchise territory. This includes restrictions on soliciting referrals within that area. These post-term covenants aim to protect Caring Transitions' business interests and goodwill.