Can Caring Transitions terminate any Fund?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Although Franchisor intends the Funds to be of perpetual duration, Franchisor maintains the right to terminate any Fund.
No Fund may be terminated, however, until all moneys in the Fund have been expended for advertising and/or promotional purposes or returned to contributors on the basis of their respective contributions during the one-year period immediately preceding the termination.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to the 2025 Caring Transitions Franchise Disclosure Document, Caring Transitions retains the right to terminate any fund, although they intend for the funds to be of perpetual duration. However, Caring Transitions cannot terminate a fund until all the money in it has been spent on advertising and promotional purposes or returned to the contributors. The return of funds would be based on the contributors' respective contributions during the one-year period immediately preceding the termination.
This means that while Caring Transitions has the power to end a fund, they must first exhaust the existing resources for the intended purpose of advertising and promotion or return the money to franchisees who contributed. This provides some assurance to franchisees that their contributions will be used as intended or returned if the fund is discontinued.
This condition protects franchisees by ensuring that the franchisor cannot simply shut down a fund and divert the money for other purposes. It ensures that the contributions are either used for the benefit of the franchise system through advertising or returned to the franchisees, maintaining transparency and accountability in the management of the funds.