How often do Caring Transitions franchisees pay the National Branding Fee?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
in the franchise agreement for that Franchise.
- 5.2 National Branding Fee. Franchisee shall pay, to the Fund established in accordance with Article 11 of this Agreement, a National Branding Fee of 2% of Franchisee's Gross Receipts for the preceding month, or $350.00 per month, whichever is greater. All National 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 Franchisor) that is not received by Franchisor within five days after the due date.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees are required to pay the National Branding Fee on a monthly basis. Specifically, the National Branding Fees are due on or before the fifth day of each month. The amount due is calculated as the greater of 2% of the franchisee's Gross Receipts for the preceding month, or a flat rate of $350.00.
However, new Caring Transitions franchisees are not immediately obligated to pay the National Branding Fee. The obligation begins on the fifth day of the second calendar month following the month in which the franchisee (or their designated individual) completes the initial training program. There are exceptions to this deferral: if the franchisee previously operated a Caring Transitions franchise under another agreement that was effective at least six months earlier, or if the franchisee acquired the territory from another existing Caring Transitions franchisee, the fee payment is not deferred.
It's important to note that Caring Transitions retains the right to increase the National Branding Fee at any time, at their sole discretion. Franchisees will be given 30 days' written notice before any increase takes effect. Failure to pay the National Branding Fee on time may result in a late fee of $100.00 or 10% of the amount due, whichever is greater.