When is the Caring Transitions royalty fee due?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 calendar month |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, the royalty fee is due by the 5th day of each month. This payment covers the gross receipts from the preceding calendar month. The royalty fee is 6% of gross receipts, with a minimum monthly payment of $300 for the first 12 months and $500 thereafter.
For a prospective Caring Transitions franchisee, this means that you need to ensure you have systems in place to accurately track your gross receipts each month and remit the royalty payment by the due date to avoid late fees or other penalties. Gross receipts are defined as all revenue on a cash basis relating to or arising from the operation of the franchised business, prior to deducting client distributions and other costs of doing business.
It's important to note that the minimum royalty payment does not begin until the fifth day of the second month following the completion of the initial training program at Caring Transitions's corporate headquarters. Furthermore, Caring Transitions may extend the minimum royalty start date by an additional month if you comply with system standards for opening your business, sign a general release, and are in full compliance with the Franchise Agreement. This provides a small window to get the business up and running before the minimum royalty obligations kick in.