After termination of a Caring Transitions franchise, what is the restricted radius around other Caring Transitions franchisees' territories where competition is prohibited?
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's 2025 Franchise Disclosure Document, a franchisee is restricted from competing within 15 miles of any other Caring Transitions franchisee's territory for two years after the termination, expiration, or transfer of their Franchise Agreement. This restriction applies regardless of the reason for termination.
Specifically, the franchisee cannot own, operate, or have any interest in a business offering moving management, estate liquidation, or household liquidation services within this 15-mile radius. They are also prohibited from promoting, selling, or soliciting referrals for these services from Shared Referral Sources or within the same 15-mile radius.
This non-compete clause is designed to protect Caring Transitions's business interests and those of its franchisees. The FDD states that the geographic and temporal restrictions are acknowledged by the franchisee as reasonable and necessary. Prospective franchisees should carefully consider the implications of this restriction, as it could limit their business opportunities if they decide to leave the Caring Transitions system.