When are Caring Transitions royalty fees due?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
5.1 Royalty.
(a) Franchisee shall pay Franchisor a monthly royalty fee of 6% of Franchisee's Gross Receipts for the preceding month, or the "Minimum Royalty" (defined in subparagraph (b) below), whichever is greater. The royalty fee is solely in consideration of Franchisee's continued right to use the Marks. All Royalties are payable on or before the fifth day of each month and are based upon Franchisee's Gross Receipts of the preceding month. Franchisee is not obligated to pay the Minimum Royalty until the fifth day of the second calendar month following the month in which Franchisee or the
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees are required to pay a monthly royalty fee. This royalty fee is calculated as 6% of the franchisee's Gross Receipts for the preceding month, or the Minimum Royalty, whichever amount is greater.
The royalty fees are payable on or before the fifth day of each month. The amount due is based on the Gross Receipts from the previous month. However, franchisees are not obligated to pay the Minimum Royalty until the fifth day of the second calendar month following the month in which the franchisee or their designated individual completes the initial training program. There are exceptions to this rule if the franchisee has operated a Caring Transitions franchise under another agreement that was effective at least six months earlier, or if the franchisee acquired the territory from another Caring Transitions franchisee.
In addition to the royalty fee, Caring Transitions franchisees also pay a National Branding Fee, which is 2% of the franchisee's Gross Receipts for the preceding month, or $350.00 per month, whichever is greater. This fee is also payable on or before the fifth day of each month. Furthermore, franchisees must pay a Technology Fee of $250 by the fifth day of each month.