After termination or expiration of a Caring Transitions franchise, for how long are franchisees prohibited from soliciting customers?
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, franchisees are restricted from soliciting customers for a period of two years after the termination or expiration of the franchise agreement. This restriction applies regardless of whether the termination was initiated by the franchisee or Caring Transitions.
Specifically, the non-solicitation clause prevents former franchisees from actively seeking out or engaging customers who were previously served by any Caring Transitions franchise. This restriction is in place to protect the customer base that Caring Transitions has cultivated and to prevent unfair competition from former franchisees who may try to leverage their past association with the brand. The non-solicitation clause extends to a 15-mile radius of any franchise territory, subject to state law.
This non-solicitation covenant is a standard practice in franchising. It aims to safeguard the franchisor's and other franchisees' investments by preventing departing franchisees from unfairly capitalizing on the brand's goodwill and established customer relationships. Prospective Caring Transitions franchisees should carefully consider the implications of this restriction, especially if they plan to remain in the same geographic area after leaving the system.