Does Caring Transitions require the on-premises manager to have an ownership interest in the franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not require that you personally supervise the franchised business, although we recommend that you do so. The franchised business must be directly supervised "on-premises" by a manager who has been approved by us and has successfully completed our training program. The manager need not have an ownership interest in the franchise. The manager must sign a written agreement to maintain the confidentiality of any confidential information about Caring Transitions or your business that may be disclosed to him or her and a covenant not to compete with your business that is enforceable within your jurisdiction. If you acquire additional Caring Transitions franchised businesses, each franchised business must have its own fulltime manager. You must hire a business development representative for each franchised business that is dedicated to marketing the business.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 33)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, Caring Transitions does not mandate that the on-premises manager of a franchise have an ownership stake in the business. While Caring Transitions recommends that the franchisee personally supervise the franchised business, it is acceptable for an approved manager who has completed the training program to directly supervise the business on-premises.
This manager is not required to have any ownership interest in the Caring Transitions franchise. However, the manager must sign agreements to maintain the confidentiality of Caring Transitions' confidential information and agree to a covenant not to compete with the business within the relevant jurisdiction.
If a franchisee owns multiple Caring Transitions locations, each location must have its own full-time manager. Additionally, each location must employ a business development representative dedicated to marketing the business. This structure allows franchisees flexibility in managing their business while ensuring that each location has adequate supervision and support.