Is Caring Transitions obligated to allow a franchisee to operate outside their territory?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not operate your franchise in another franchisee's territory, except as disclosed in this Item 12. "Operate your franchise in another franchisee's territory" means advertising, soliciting, offering, providing, or selling products or services in another franchisee's territory. The exclusivity of your territory begins once you complete our initial training program and become fully operational.
Although we are not obligated to do so under the franchise agreement, we may permit you to operate your franchise in areas outside your territory that are not part of another Caring Transitions franchisee's territory. We may, in our discretion, allow you to continue serving existing clients located in areas outside your territory after such area later becomes part of another franchisee's territory, but you must stop soliciting and serving new clients in any such area. Similarly, earlier Caring Transitions franchisees may have operated their franchises in areas that later became part of your territory; if so, they will be permitted to continue to provide services in your territory to clients they already had in your territory before you opened your franchise, but they will be prohibited from soliciting and serving any new clients in your territory once you open your franchise. In addition, we may permit you to operate in the territory of a franchisee that has been provided written notification of a default under
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees are generally restricted from operating in other franchisees' territories. The FDD states that franchisees "may not operate your franchise in another franchisee's territory," which includes advertising, soliciting, offering, providing, or selling products or services there.
However, Caring Transitions may permit a franchisee to operate outside their territory under specific circumstances. One instance is when the area is not part of another Caring Transitions franchisee's territory. Even if an area later becomes part of another franchisee's territory, Caring Transitions may allow the original franchisee to continue serving existing clients in that area, although they must cease soliciting new clients there. Similarly, earlier franchisees who operated in areas that later became part of a new franchisee's territory are allowed to continue serving their existing clients but cannot solicit new ones.
Additionally, Caring Transitions may permit a franchisee to operate in the territory of a franchisee who has been notified of a default under the franchise agreement. However, Caring Transitions is not obligated to allow operation outside of the assigned territory, retaining discretion in such matters. Franchisees are also free to solicit or accept clients outside their territory using channels like the Internet or telemarketing, as long as it doesn't violate the restrictions outlined in Item 12 of the FDD.