What is the purpose of the Caring Transitions National Branding Fee?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
As required in Section 5.2, Franchisee shall contribute a National Branding Fee to a national advertising fund established by Franchisor pursuant to Section 11.3 below.
Franchisor shall, for each of its company-owned locations (if any), pay National Branding Fees on the same basis as other franchisees within the System.
- 11.3.
Administration of Funds.
Franchisor may establish one or more regional advertising funds and designate any geographical area as a region for establishing regional advertising funds, and/or a national advertising fund (the "Funds"), which shall be maintained and administered as follows:
- (a) The Funds are intended to maximize general public recognition and acceptance of the Marks for the benefit of all franchises within the System or within a region, as the case may be.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the National Branding Fee is intended to maximize general public recognition and acceptance of the Caring Transitions marks. This benefits all franchises within the Caring Transitions system or within a specific region. The funds collected are used exclusively for costs related to advertising and promotional activities. These activities include maintaining, administering, researching, and directing advertising, developing public relations campaigns, and creating new marketing materials for the Caring Transitions system and its franchisees.
The National Branding Fee is set at 2% of the franchisee's gross receipts for the preceding month, or $350.00 per month, whichever is greater. Franchisees must pay this fee to the 'Caring Transitions National Branding Fund' by electronic funds transfer. These funds are kept in a separate account from Caring Transitions' other monies.
Franchisee contributions to the National Branding Fund cannot be used to cover Caring Transitions' operating expenses. However, the funds may cover reasonable salaries, overhead, administrative, accounting, and legal costs that Caring Transitions incurs while administering the fund or advertising programs. These costs also include enforcing contributions to the fund and preparing statements of operations. Caring Transitions aims to spend all franchisee contributions and earnings of the funds for advertising and promotional purposes during the taxable year in which the contributions are made.
Caring Transitions also contributes to the Funds on the same basis as comparable franchisees for any company-owned locations. This ensures that company-owned locations contribute their fair share to the advertising efforts. Additionally, Caring Transitions may establish regional advertising funds and cooperatives, contributing to these on the same basis as franchisees in those regions. This structure ensures a comprehensive approach to marketing and advertising, benefiting all franchisees within the Caring Transitions system.