What are the non-competition covenants after the Caring Transitions franchise is terminated or expires?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | 7.20, 15.3, 15.4 & 15.10 | No involvement in business that competes with Caring Transitions for 2 years in or within 15 miles of any franchisee's territory (subject to state law) , no solicitation of customers for 2 years, no solicitation of referral sources in or within 15 miles of any franchise territory for 2 years (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, franchisees are subject to certain non-competition covenants if the franchise is terminated or expires. Specifically, for a period of two years, franchisees cannot be involved in any business that competes with Caring Transitions.
This restriction applies within the franchisee's territory and extends to a 15-mile radius around any other Caring Transitions franchisee's territory. Furthermore, for two years, franchisees are prohibited from soliciting customers or referral sources within their territory or within 15 miles of any other franchise territory. These restrictions may be subject to state law, potentially altering their enforceability or scope depending on the franchisee's location.
These non-compete terms are fairly standard in franchising, designed to protect the brand and other franchisees. Prospective franchisees should carefully consider the implications of these restrictions, especially if they plan to remain in the same geographic area and industry after leaving the Caring Transitions system. Understanding the specific state laws governing non-competes is crucial, as some states may have stricter limitations on their enforceability than others.