What is the minimum royalty fee for a Caring Transitions franchise each month after the initial 12-month period?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisee acquired the Territory from another Caring Transitions franchisee.
- (b) The Minimum Royalty is: (1) $300 a month for the first 12 months beginning on the Min
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees must pay a monthly royalty fee. This fee is either 6% of the franchisee's gross receipts for the preceding month or a minimum royalty amount, whichever is greater.
During the first 12 months after the Minimum Royalty Effective Date, the minimum royalty is $300 per month. After this initial period, the minimum royalty increases to $500 per month. The Minimum Royalty Effective Date is defined as the fifth day of the second calendar month following the month in which the franchisee or the Designated Individual completes the initial training program.
Therefore, after the first year of operation (specifically, after the initial 12-month period beginning on the Minimum Royalty Effective Date), a Caring Transitions franchisee must pay a minimum royalty fee of $500 per month, unless 6% of their gross receipts exceeds this amount, in which case they pay the higher percentage.