When are Caring Transitions National Branding Fees due?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
in the franchise agreement for that Franchise.
- 5.2 National Branding Fee. Franchisee shall pay, to the Fund established in accordance with Article 11 of this Agreement, a National Branding Fee of 2% of Franchisee's Gross Receipts for the preceding month, or $350.00 per month, whichever is greater. All National Branding Fees shall be payable on or before the fifth day of each month. Franchisee is not obligated to pay the National Branding Fee until the fifth day of the second calendar month immediately following the month in which Franchisee or the Designated Individual completes the initial training program required by Section 7.1, unless: (1) Franchisee has operated a Caring Transitions franchise under another franchise agreement with an effective date at least six months earlier than the Effective Date of this Agreement; or (2) Franchisee acquired the Territory from another Caring Transitions franchisee. Franchisor reserves the right to increase the amount of the National Branding Fee at any time in its sole discretion. Any increase in the National Branding Fee shall be effective thirty days after Franchisee's receipt of written notice thereof.
- 5.3 Late Payment. Franchisee shall pay (to Franchisor or to the Fund, as the case may be) a late fee of $100.00 or 10% of the amount due, whichever is greater, on any payment (including, without limitation, amounts due for Royalties, National Branding Fees, or goods or services provided by the Fund, by Franchisor or any affiliate of Franchisor) that is not received by Franchisor within five days after the due date. Franchisee shall pay to Franchisor a late fee of $100 for any Revenue Report, tax return, or other Business Record that is not received by Franchisor within five days after the due date. Any payments that are not received by Franchisor within thirty days after its due date shall bear interest at the rate of 18% per annum, or the highest rate allowed by law, whichever is lower, from the date payment is due to the date payment is received by Franchisor, regardless of any subordinate agreement that may be in effect to postpone payment.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the National Branding Fees are due on or before the fifth day of each month. The amount due is calculated as 2% of the franchisee's gross receipts for the preceding month, or a minimum of $350.00, whichever is greater. This fee contributes to a fund used for national branding and advertising efforts.
However, a new Caring Transitions franchisee is not required to pay the National Branding Fee until the fifth day of the second calendar month immediately following the month in which the franchisee or their designated individual completes the initial training program. This grace period provides a buffer for new franchisees as they start their business. This deferral does not apply if the franchisee previously operated a Caring Transitions franchise under another agreement effective at least six months prior to the current agreement, or if the franchisee acquired the territory from another existing Caring Transitions franchisee.
It's important to note that Caring Transitions retains the right to increase the National Branding Fee at its discretion, with any increase becoming effective 30 days after the franchisee receives written notice. Late payments are subject to a fee of $100.00 or 10% of the amount due, whichever is greater, if the payment is not received within five days of the due date. Payments not received within thirty days after the due date will incur interest at a rate of 18% per annum, or the highest rate allowed by law, whichever is lower.