What is the Caring Transitions policy on non-compete agreements?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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You may not compete with, or own an interest in any business that competes with, your franchise anywhere during the term of your franchise agreement, or in or within 15 miles of your territory or any other franchisee's territory for 2 years after the expiration or termination of your franchise agreement. You may not solicit any "shared referral sources" (wherever located) for 2 years after the expiration or termination of your franchise agreement (see Item 12 for an explanation of "shared referral sources"). If the franchisee is a corporation, partnership, limited liability company, or other entity, the restrictions in this paragraph also apply to all of the owners of the franchisee. If the franchisee is a corporation, partnership, limited liability company, or other entity, all of its owners must sign a written agreement to maintain the confidentiality of any confidential information about Caring Transitions or your business that may be disclosed to them, and a written agreement (a sample of this agreement is attached to this disclosure document as Exhibit H) personally guaranteeing all of the franchisee's obligations under the franchise agreement. The spouse of an owner is not required to sign a guaranty unless he or she has an ownership interest in the franchise.
ITEM 16. RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
There are no restrictions on the goods or services you may offer for sale, except as described below in this Item 16.
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, franchisees are restricted from competing with their franchise during the term of the franchise agreement. This non-compete extends to owning an interest in any business that competes with the Caring Transitions franchise.
After the franchise agreement expires or terminates, the franchisee is restricted from competing for two years. This post-term non-compete applies within the franchisee's territory and within 15 miles of any other Caring Transitions franchisee's territory. Additionally, franchisees are prohibited from soliciting shared referral sources, regardless of their location, for two years after the agreement's expiration or termination. These restrictions also apply to all owners of the franchise if the franchisee is a corporation, partnership, limited liability company, or other entity.
Caring Transitions also requires that the manager of the franchised business sign a covenant not to compete with the franchisee's business. This agreement is enforceable within the jurisdiction where the franchise operates. If a franchisee acquires additional Caring Transitions franchises, each franchise must have its own full-time manager, and each manager must adhere to the non-compete and confidentiality agreements. This ensures that each Caring Transitions location is properly managed and that confidential information remains protected, while also preventing competition from former managers within the Caring Transitions system.