After termination or expiration of a Caring Transitions franchise, what is the geographic limit on non-competition?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | 7.20, 15.3, 15.4 & 15.10 | No involvement in business that competes with Caring Transitions for 2 years in or within 15 miles of any franchisee's territory (subject to state law) , no solicitation of customers for 2 years, no solicitation of referral sources in or within 15 miles of any franchise territory for 2 years (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, if the franchise agreement is terminated or expires, the franchisee is subject to certain non-competition covenants. Specifically, the franchisee cannot be involved in any business that competes with Caring Transitions for two years. This restriction applies within the franchisee's territory and extends to a 15-mile radius around any other Caring Transitions franchisee's territory. These restrictions are subject to state law, which may impact their enforceability.
In addition to the geographic and competitive restrictions, the franchisee is also prohibited from soliciting customers or referral sources. This restriction extends for two years and applies within the franchisee's territory and within 15 miles of any other Caring Transitions franchise territory. Like the non-compete clause, the non-solicitation clause is subject to state law.
These post-term non-compete and non-solicitation clauses are fairly standard in franchising to protect the brand's customer base, trade secrets, and franchise system goodwill. However, the specific terms can vary significantly. Some states may have stricter rules regarding the enforceability of non-compete agreements, so a prospective Caring Transitions franchisee should consult with a legal professional to understand the specific implications in their state.