When does a new Caring Transitions franchisee begin paying the National Branding Fee?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
al 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 Franchi
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a new franchisee typically starts paying the National Branding Fee on the fifth day of the second calendar month after completing the initial training program. This fee is calculated as 2% of the franchisee's gross receipts for the preceding month or a flat rate of $350.00 per month, whichever amount is greater. All National Branding Fees are payable on or before the fifth day of each month.
However, there are exceptions to this rule. A franchisee is immediately obligated to pay the National Branding Fee if they have previously operated a Caring Transitions franchise under another agreement that was effective at least six months before the current agreement's effective date. Similarly, if a franchisee acquires their territory from an existing Caring Transitions franchisee, they are also required to begin paying the fee immediately.
Caring Transitions retains the right to increase the National Branding Fee at its discretion, provided that franchisees receive written notice of the increase at least thirty days before it takes effect. This fee contributes to the National Branding Fund, which is used for marketing and promotional activities to enhance the brand's recognition and acceptance. Understanding these payment terms and potential changes is crucial for prospective franchisees to accurately forecast their initial and ongoing expenses.