What specific services are Caring Transitions franchisees prohibited from offering after the franchise agreement terminates?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Except as otherwise approved in writing by Franchisor, Franchisee shall not, for a continuous and uninterrupted period commencing upon the expiration, termination, or transfer of this Agreement (regardless of the cause for termination) and continuing for two (2) years thereafter, directly or indirectly, for itself or through, on behalf of, or in conjunction with any person (including a spouse, child, parent, or sibling of Franchisee or of a principal of Franchisee), partnership, limited liability company, corporation, or other entity:
- (1) own, maintain, operate, engage in, or have any interest in any business offering moving management, estate liquidation or household liquidation services, or any other services that had been offered by the franchised business, that is or is intended to be located or which operates in or within 15 miles of the geographical boundaries of Franchisee's Territory or within 15 miles of the geographical boundaries any Caring Transitions franchisee's Territory; or
- (2) promote, sell, procure, provide or solicit referrals for, or offer to sell, procure, provide or solicit referrals for, moving management, estate liquidation or household liquidation services, any Permitted Products and Services, or any other services that are offered in the franchised business, from any Shared Referral Sources (as defined in Section 8.7 above) or in or within 15 miles of the geographical boundaries of
Franchisee's Territory or in or within 15 miles of any other Caring Transitions franchisee's Territory.
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 franchisee is restricted from engaging in certain business activities after the termination, expiration, or transfer of the Franchise Agreement. For a period of two years, the franchisee cannot own, operate, or have any interest in a business that offers moving management, estate liquidation, or household liquidation services, or any other services that were offered by the franchised Caring Transitions business. This restriction applies within the franchisee's territory and extends to a 15-mile radius around it, as well as within 15 miles of any other Caring Transitions franchisee's territory.
Additionally, the franchisee is prohibited from promoting, selling, or soliciting referrals for moving management, estate liquidation, or household liquidation services, any Permitted Products and Services, or any other services offered by the franchised business. This restriction applies to Shared Referral Sources and within the same geographic boundaries as the business ownership restriction: the franchisee's territory, a 15-mile radius around it, and within 15 miles of any other Caring Transitions franchisee's territory.
These restrictions are designed to protect Caring Transitions' business interests and prevent former franchisees from directly competing with the brand or its other franchisees within a defined area for a limited time. Prospective franchisees should carefully consider these post-termination covenants, as they could impact their future business opportunities if they decide to leave the Caring Transitions system.