For how long after a client receives services from a Caring Transitions Franchised Business is a franchisee prohibited from soliciting that client for a Competitive Business?
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:
- (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, a franchisee is restricted from soliciting clients of their Franchised Business for a Competitive Business. This restriction applies to anyone who was a client or received services from the Franchised Business at any time during the one-year period prior to the beginning of the Restrictive Period. The Restrictive Period extends until the second anniversary of the service date.
In simpler terms, this means that if a client received services from a Caring Transitions franchise, the franchisee cannot solicit that client for a competing business for a total of three years. This is calculated as one year prior to the start of the two-year Restrictive Period, plus the two years of the Restrictive Period itself.
This non-solicitation clause is designed to protect Caring Transitions' client base and prevent franchisees from leveraging their access to clients to start a competing business shortly after providing services under the Caring Transitions brand. Prospective franchisees should understand this restriction and factor it into their business plans, especially if they anticipate wanting to engage in related business activities in the future.