When is the Caring Transitions Right of First Refusal fee payable?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
FEES**
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty fee – Notes 1 & 10 | 6% of Gross Receipts; $300 monthly minimum for 12 months; $500 monthly minimum thereafter – Note 2 | Payable by the 5th day of each month – Note 1 | Paid on Gross Receipts for preceding calen |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the Right of First Refusal fee is payable at the time you purchase a right of first refusal on another franchise territory. The fee itself is $3,000. This fee is applicable if a franchisee wants the option to expand their territory and have the first opportunity to purchase a neighboring territory should it become available.
For a prospective Caring Transitions franchisee, this means that if they are interested in securing future expansion opportunities, they must pay the $3,000 fee upfront to obtain the right of first refusal. This fee grants them the privilege, but not the obligation, to purchase the territory before it is offered to others. It's important to note that this is an optional fee, and franchisees are not required to purchase a right of first refusal.
The Right of First Refusal fee is non-refundable, as noted in Item 6. This is a fairly standard practice in franchising, as the fee compensates the franchisor for granting the franchisee the exclusive option to expand. Franchisees should carefully consider their long-term growth plans and financial situation before deciding to purchase a right of first refusal, as the $3,000 fee is non-refundable even if they ultimately do not exercise their option to purchase the additional territory.