What services can other franchises offer within a Caring Transitions territory?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
We may not operate or grant another Caring Transitions franchise within your franchise territory, but nothing prohibits us from operating or granting other franchises under different trademarks or trade names within your territory. These franchises may offer some of the same services offered by Caring Transitions franchises so long as they are not "substantially similar" to a Caring Transitions franchise.
The exclusivity of your territory does not extend to "shared referral sources" (such as attorneys, bank trust departments, real estate agents and brokers, funeral homes, senior care facilities, and similar organizations) that will be shared by all franchisees in a market. Other Caring Transitions franchisees may solicit referrals from and promote their services to shared referral sources located in your territory, and you may solicit referrals from and promote your services to shared referral sources located in another franchisee's territory. We have the exclusive right to identify the shared referral sources in each market on a case-by-case basis and resolve all disputes between franchisees relating to shared referral sources.
Similarly, earlier Caring Transitions franchisees may have operated their franchises in areas that later became part of your territory; if so, they will be permitted to continue to provide services in your territory to clients they already had in your territory before you opened your franchise, but they will be prohibited from soliciting and serving any new clients in your territory once you open your franchise.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, Caring Transitions may operate or grant other franchises under different trademarks or trade names within a franchisee's territory. These other franchises are allowed to offer some of the same services as Caring Transitions franchises, provided that the services are not "substantially similar" to those offered by a Caring Transitions franchise. This means that while Caring Transitions grants franchisees an exclusive territory delineated by postal codes with a population between 175,000 and 200,000, this exclusivity has some limitations.
The FDD also states that the exclusivity of a Caring Transitions territory does not extend to "shared referral sources" such as attorneys, bank trust departments, real estate agents and brokers, funeral homes, and senior care facilities. Other Caring Transitions franchisees can solicit referrals from and promote their services to these shared referral sources located within another franchisee's territory, and vice versa. Caring Transitions retains the exclusive right to identify these shared referral sources in each market and resolve any disputes between franchisees related to them.
Furthermore, earlier Caring Transitions franchisees may have operated in areas that later became part of a new franchisee's territory. These earlier franchisees are permitted to continue providing services to clients they already had in that territory before the new franchise opened, but they are prohibited from soliciting and serving any new clients in the territory. This exception ensures continuity for existing clients but protects the new franchisee's right to develop new business within their territory. These stipulations are important for prospective franchisees to consider, as they clarify the scope and limitations of the exclusive territory granted by Caring Transitions.