Can Caring Transitions retain rebates received from suppliers based on franchisee purchases?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor and/or its affiliates have the right to receive rebates, discounts, allowances, and other payments from suppliers in respect of group purchasing programs and otherwise on account of the suppliers' dealings with Franchisee and other Caring Transitions franchisees, which Franchisor is entitled to retain and use without restriction for any purpose and without accounting to Franchisee.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, Caring Transitions and its affiliates have the right to receive rebates, discounts, allowances, and other payments from suppliers based on the dealings those suppliers have with Caring Transitions franchisees. These incentives can come from group purchasing programs or other arrangements.
Caring Transitions is entitled to retain and use these payments without restriction for any purpose. This means that franchisees will not receive a portion of these rebates, and Caring Transitions is not obligated to account for how they use the funds.
This arrangement is common in franchising, where franchisors negotiate with suppliers on behalf of the entire franchise system. While franchisees may benefit from the negotiated pricing, the franchisor often retains any additional incentives or rebates as a source of revenue or to fund system-wide initiatives.