What are 'shared referral sources' for a Caring Transitions franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, 'shared referral sources' are defined as entities such as attorneys, bank trust departments, real estate agents and brokers, funeral homes, senior care facilities, and similar organizations within a market. These sources are shared among all Caring Transitions franchisees operating in that market, meaning that multiple franchisees can solicit referrals from and promote their services to the same referral sources, regardless of their specific territory.
This arrangement allows for a broader reach within the community and can foster competition among franchisees. While a franchisee has an exclusive territory, this exclusivity does not extend to these shared referral sources. This means a franchisee can solicit referrals from shared sources located outside their territory, and conversely, other franchisees can solicit referrals from shared sources within a franchisee's territory.
Caring Transitions retains the exclusive right to identify these shared referral sources on a case-by-case basis within each market and to resolve any disputes that may arise between franchisees regarding these sources. This ensures that the system maintains control over key referral relationships and can mediate conflicts to maintain a harmonious network. Prospective franchisees should be aware that they will be competing with other franchisees for referrals from these shared sources, which could impact their business development strategies and revenue projections.
This system of shared referral sources is common in franchise systems that rely on local networking and community relationships for business development. It balances the benefits of exclusive territories with the need for franchisees to access a wide range of potential referral partners. Franchisees should proactively engage with these shared referral sources to build relationships and generate leads for their Caring Transitions business.