Who resolves disputes between Caring Transitions franchisees relating to shared referral sources?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
The exclusivity of your territory does not extend to "shared referral sources" (such as attorneys, bank trust departments, real estate agents and brokers, funeral homes, senior care facilities, and similar organizations) that will be shared by all franchisees in a market. Other Caring Transitions franchisees may solicit referrals from and promote their services to shared referral sources located in your territory, and you may solicit referrals from and promote your services to shared referral sources located in another franchisee's territory. We have the exclusive right to identify the shared referral sources in each market on a case-by-case basis and resolve all disputes between franchisees relating to shared referral sources.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, Caring Transitions retains the exclusive right to resolve all disputes between franchisees regarding shared referral sources. Shared referral sources include entities like attorneys, bank trust departments, real estate agents and brokers, funeral homes, and senior care facilities within a market. This means that while franchisees can solicit referrals from these shared sources, Caring Transitions has the final say in resolving any conflicts that may arise between franchisees competing for the same referral source.
This provision is important for prospective franchisees as it clarifies that while they have the freedom to market to shared referral sources, they do not have ultimate control over those relationships. If conflicts arise with other franchisees, Caring Transitions will make the final decision. This could impact a franchisee's ability to cultivate and maintain relationships with key referral partners in their territory.
It is also important to note that Caring Transitions has the exclusive right to identify shared referral sources in each market on a case-by-case basis. This means that the franchisor determines which referral sources are considered "shared" and subject to this dispute resolution process. Franchisees should be aware of this dynamic and understand that their ability to exclusively cultivate certain referral relationships may be limited by Caring Transitions's discretion.