What is the minimum monthly royalty fee for a Caring Transitions franchise during the first 12 months?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty fee – Notes 1 & 10 | 6% of Gross Receipts; $300 monthly minimum for 12 months; $500 monthly minimum thereafter – Note 2 | Payable by the 5th day of each month – Note 1 | Paid on Gross Receipts for preceding calendar month |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, franchisees must pay a royalty fee, which is the greater of 6% of gross receipts or a minimum monthly amount. For the first 12 months after the minimum royalty start date, the minimum royalty is $300 per month. After this initial period, the minimum monthly royalty increases to $500.
The FDD specifies that the minimum royalty payment is not required until the fifth day of the second month following completion of the training program at Caring Transitions's corporate headquarters. Furthermore, franchisees can extend the start date for the minimum royalty by an additional month if they meet certain system standards for opening their business. These standards include completing a business plan, engaging in recommended marketing activities, signing a general release, and remaining in full compliance with the Franchise Agreement.
In practical terms, a new Caring Transitions franchisee can expect to pay at least $300 per month in royalties during their first year, provided their gross receipts do not result in a higher royalty payment based on the 6% calculation. However, by adhering to the outlined system standards, a franchisee can potentially delay the start of these minimum royalty payments by up to two months, offering some financial flexibility during the initial startup phase.