What is the monthly fee for the Caring Transitions technology/software license?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Technology/Software | $250 | Monthly | You must pay us a fee for technology/proprietary |
| License Fee – Note | software that we license or make available to you | ||
| 10 | for use in the operation of the business |
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- You must pay a monthly Technology Fee of $250 for software licensing or development fees and other technology tools to be used for the operation of your business. In our most recent fiscal year, we received technology fees totaling $414,855, or about 4.3% of our total revenues of $9,739,278. The amount of the Technology Fee is subject to change upon reasonable notice, but will not be increased by more than 10% per each year in which the franchise agreement has been effective in addition to increases due to additional or different software and technology tools being added and price increases from third-party vendors. In our discretion, we may require you to purchase some or all of the technology tools directly from a third-party supplier.
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 monthly technology fee of $250 for the software license. This fee covers the cost of technology and proprietary software that Caring Transitions licenses or makes available to franchisees for use in operating their business.
The FDD also states that Caring Transitions received technology fees totaling $414,855 in their most recent fiscal year, which accounted for approximately 4.3% of their total revenues of $9,739,278. This gives a sense of how significant these fees are to the franchisor's overall revenue stream.
It is important to note that the technology fee is subject to change with reasonable notice. However, Caring Transitions states that increases will not exceed 10% per year in which the franchise agreement is effective, unless the increase is due to additional or different software and technology tools being added, or due to price increases from third-party vendors. Caring Transitions also retains the discretion to require franchisees to purchase some or all of the technology tools directly from a third-party supplier, which could impact the overall cost to the franchisee.