What is the minimum monthly royalty fee for a Caring Transitions franchise as stated in Item 6, and when does it increase?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
em 6. You must pay a monthly Royalty equal to the greater of 6% of actual Gross Receipts from the prior month or the Minimum Royalty. The Minimum Royalty is $300 a month for 12 months after the minimum royalty start date and then $500 a month. You are not required to pay the Minimum Royalty until the fifth day of the second month following the month in which you complete the training program held at our corporate headquarters. We will extend the Minimum Royalty start date for an additional month if you comply with System Standards for opening your business (including completing a business plan and recommended marketing activities), sign a general release, and are in full compliance with the Franchise Agre
What This Means (2025 FDD)
According to the 2025 Caring Transitions Franchise Disclosure Document, franchisees must pay a monthly royalty fee. This royalty is calculated as the greater of 6% of the previous month's gross receipts or a minimum royalty amount. Initially, the minimum royalty is $300 per month for the first 12 months after the minimum royalty start date.
The minimum royalty start date is the fifth day of the second month following the completion of the training program at Caring Transitions' corporate headquarters. However, this start date may be extended by an additional month if the franchisee meets certain system standards for opening their business, such as completing a business plan and recommended marketing activities, signing a general release, and fully complying with the Franchise Agreement.
After the initial 12-month period, the minimum royalty increases to $500 per month. This increase occurs in the month following the end of the first year of operation. Therefore, a Caring Transitions franchisee needs to be prepared for this increase in their monthly royalty obligations after the first year.