What is the second gross receipt target a Caring Transitions franchisee must meet to qualify for a rebate?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
sarily coincide with a calendar year. For example, a Year may be the period from April 1, 2024 through March 31, 2025, or from July 1, 2024 through June 30, 2025.
- (c) The "Rebate Period" begins on the Commencement Date and ends on the day before the fifth anniversary of the Commencement Date.
-
- As an incentive for Franchisee to fully develop the Franchised Business and the Territory, if Franchisee attains:
- (a) at least $900,000 of cumulative Gross Receipts during the two-Year period after the Commencement Date, then Franchisor will reb
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee can receive a rebate of $10,000 of the franchise fee if they attain at least $1,600,000 of cumulative gross receipts during the three-year period after the Commencement Date. To qualify for this second rebate, the franchisee must have already qualified for the first rebate, which requires at least $900,000 of cumulative gross receipts during the two-year period after the Commencement Date.
This rebate structure is designed to incentivize franchisees to develop their Caring Transitions business and territory. By meeting the gross receipt targets, franchisees can recoup a portion of their initial franchise fee. The "Commencement Date" is defined as the first day of the first month following the completion of the initial training program.
It's important to note that strict compliance with the Franchise Agreement is required to be eligible for any rebates. This includes timely reporting of gross receipts, paying all royalties and fees, and attending required conferences and training. Additionally, the franchisee must execute a general release in a form prescribed by Caring Transitions prior to each rebate. Failure to comply with these requirements or termination of the Franchise Agreement will result in the forfeiture of any rebates.
The rebate structure provides a potential financial benefit for franchisees who successfully grow their Caring Transitions business. However, franchisees should carefully consider the requirements and conditions for receiving the rebates and ensure they can meet the targets while maintaining compliance with the Franchise Agreement.