Does the non-compete clause for Caring Transitions extend to the franchisee's spouse or children?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Except as otherwise approved in writing by Franchisor, Franchisee shall not, for a continuous and uninterrupted period commencing upon the expiration, termination, or transfer of this Agreement (regardless of the cause for termination) and continuing for two (2) years thereafter, directly or indirectly, for itself or through, on behalf of, or in conjunction with any person (including a spouse, child, parent, or sibling of Franchisee or of a principal of Franchisee), partnership, limited liability company, corporation, or other entity:
- (1) own, maintain, operate, engage in, or have any interest in any business offering moving management, estate liquidation or household liquidation services, or any other services that had been offered by the franchised business, that is or is intended to be located or which operates in or within 15 miles of the geographical boundaries of Franchisee's Territory or within 15 miles of the geographical boundaries any Caring Transitions franchisee's Territory; or
- (2) promote, sell, procure, provide or solicit referrals for, or offer to sell, procure, provide or solicit referrals for, moving management, estate liquidation or household liquidation services, any Permitted Products and Services, or any other services that are offered in the franchised business, from any Shared Referral Sources (as defined in Section 8.7 above) or in or within 15 miles of the geographical boundaries of
Franchisee's Territory or in or within 15 miles of any other Caring Transitions franchisee's Territory.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, the non-compete clause extends to the franchisee's spouse and children. Specifically, after the termination, expiration, or transfer of the Franchise Agreement, the franchisee is restricted from engaging in competitive business activities either directly or indirectly.
This restriction applies for two years and includes actions taken by the franchisee themselves or through any person, including a spouse, child, parent, or sibling, or any entity they are associated with. The restricted activities include owning, operating, or having any interest in a business offering similar services, such as moving management, estate liquidation, or household liquidation services, within 15 miles of the franchisee's territory or any other Caring Transitions franchisee's territory.
Furthermore, the franchisee is prohibited from soliciting referrals for these services from shared referral sources within the same geographic boundaries. This comprehensive non-compete agreement aims to protect Caring Transitions's business interests and market share by preventing former franchisees and their close relations from directly competing with the franchise system within a defined period and area.