What is a 'Shared Referral Source' in the context of a Caring Transitions franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
A "Shared Referral Source" is a person or organization that: (i) because of its purpose or the nature of its business, frequently encounters opportunities to recommend, to its customers, members, or to the general public, providers of services
similar to the services offered by a Caring Transitions franchise; and (ii) though it may be physically located within one franchise territory, serves a geographic area larger than that franchise territory. Examples of Shared Referral Sources (by way of illustration and not limitation) are attorneys, bank trust departments, publications of a general circulation, real estate agents and brokers, funeral homes, senior care facilities, and similar organizations. Franchisor retains the sole and exclusive right to identify Shared Referral Sources on a case-by-case basis, in Franchisor's sole and absolute discretion. All disputes between franchisees of the System relating to Shared Referral Sources will be resolved by Franchisor, whose decision will be final and binding upon all parties.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a "Shared Referral Source" is defined as an entity that, due to its nature or business, frequently recommends service providers similar to those offered by a Caring Transitions franchise. These sources may serve a geographic area larger than a single franchise territory, even if they are physically located within one.
Examples of Shared Referral Sources include attorneys, bank trust departments, general circulation publications, real estate agents and brokers, funeral homes, and senior care facilities. It's important to note that Caring Transitions retains the exclusive right to identify Shared Referral Sources on a case-by-case basis, using its sole discretion. Any disputes between franchisees regarding Shared Referral Sources will be resolved by Caring Transitions, and their decision will be final.
For a prospective franchisee, this means that while you have a designated territory, you may be competing with other Caring Transitions franchisees for referrals from these Shared Referral Sources. Conversely, you are also allowed to solicit referrals from Shared Referral Sources located outside of your territory, in areas licensed to other franchisees. This aspect of the franchise agreement emphasizes the importance of networking and building relationships with these key referral sources, as they are not exclusive to any single franchisee's territory.