What is the Caring Transitions policy on the use of third-party vendors?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
ed purchases.
Suppliers. The operations manual contains a list of approved suppliers for the marketing materials, business cards, business stationery, equipment, and services you will need to operate the franchised business. Other suppliers may be approved by sending us a written request for approval along with a sample of the supplier's product. You will typically be notified whether the supplier is approved within 30 days after we receive all the necessary information. We do not charge a fee for approving suppliers. We may revoke approval of any approved supplier at any time if the quality of the product and the supplier's financial condition and ability to satisfy your requirements do not continue to meet our satisfaction. Except as disclosed above, neither we nor any persons affiliated with us are currently an approved supplier and no officer of Caring Transitions has an ownership interest in any approved supplier.
Except as disclosed above, we have not established specifications for the equipment and supplies necessary to operate your Caring Transitions franchise, although we do provide you with a list of suggested equipment and supplies. Except as disclosed above, we do not offer or sell equipment or supplies to you.
Arrangements With Suppliers. We have negotiated an arrangement with EstateSales.net to provide our franchisees a "gold package" subscription at approximately a 20% discount. This arrangement is subject to change without notice.
Some suppliers pay fees for sponsorships or display space at our annual conference. These fees defray our costs for the conference, but there are not specific restrictions on their use. In calendar year 2024, we received $108,491 in proceeds from suppliers for sponsorships or display space at our annual conference.
Except as disclosed herein, neither we nor our affiliates derived revenue, rebates, or other material consideration based on required purchases or leases by franchisees, based on the most recent audited financial statements. We do not provide material benefits to you based upon your use of designated or approved sources. There are no purchasing or distribution cooperatives, although we have the right to require you to participate with us or with other franchisees when purchasing certain products or services to be sold or used in the franchised business.
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees have some flexibility in choosing suppliers, but Caring Transitions maintains control over certain aspects. The operations manual lists approved suppliers for marketing materials, business cards, stationery, equipment, and services. Franchisees can request approval for other suppliers by submitting a written request and a product sample, with Caring Transitions typically responding within 30 days. Caring Transitions does not charge a fee for approving suppliers but can revoke approval if the supplier's product quality, financial condition, or ability to meet requirements are unsatisfactory.
For the computer system needed to operate the franchise, franchisees can purchase from any approved supplier listed in the operations manual. Franchisees may also be required to purchase or lease proprietary software from Caring Transitions, its affiliates, or a designated third party. The FDD estimates that the cost of goods purchased according to specifications will range from 3% to 12% of the initial investment and approximately 20% to 40% of ongoing operating expenses.
Caring Transitions has negotiated an arrangement with EstateSales.net to provide franchisees with a "gold package" subscription at an approximate 20% discount, although this arrangement can change without notice. Franchisees are not allowed to permit any third party to imprint Caring Transitions' marks on any products without the franchisor's consent and a signed License Agreement. Overall, Caring Transitions aims to balance franchisee autonomy with maintaining brand standards and quality control through its supplier policies.