When does the obligation to pay the National Branding Fee begin for a new Caring Transitions franchisee?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, new franchisees are not required to pay the National Branding Fee until the fifth day of the second calendar month immediately following the month in which they or their designated individual completes the initial training program. This means that if a franchisee completes training in January, the National Branding Fee payments would start on the fifth day of March. The National Branding Fee is either 2% of the franchisee's Gross Receipts for the preceding month, or $350.00 per month, whichever is greater.
There are exceptions to this rule. If the franchisee has previously operated a Caring Transitions franchise under another agreement that was effective at least six months before the current agreement, or if the franchisee acquired their territory from another existing Caring Transitions franchisee, the standard grace period does not apply, and they may be required to pay the National Branding Fee sooner.
Caring Transitions retains the right to increase the National Branding Fee at any time, but they must provide franchisees with 30 days' written notice before any increase takes effect. This fee contributes to a fund used for marketing and promoting the Caring Transitions brand, as detailed in Article 11 of the franchise agreement.