How is the Caring Transitions Territory defined?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
The Territory described in Section 1.2 of the Franchise Agreement to which this Exhibit B is attached shall consist of the following postal codes: between Franchisor and Franchisee. The parties are signing this Exhibit B on the date(s) set forth below. This Exhibit B is to be attached to, incorporated in and made a part of the Franchise Agreement FRANCHISEE(S): FRANCHISOR: C.T. FRANCHISING SYSTEMS, INC. Signature By: Date: Signature Date:
WEBSITE TERMS OF USE AGREEMENT
This Website Terms of Use Agreement ("Agreement') is entered into by and between C.T. Franchising Systems, Inc. ("Franchisor" or "we"), and ("Franchisee" or "you").
RECITALS:
A. Under a franchise agreement (the "Franchise Agreement") executed concurrently with this agreement, we granted you the limited right to operate a Caring Transitions franchised business (a "Caring Transitions Franchise") using our unique business format, registered CARING TRANSITIONS® trademark, and other trademarks that we own.
B. We own one or more Websites, including, among others, www.ctbids.com and seller.ctbids.com (collectively, the "Website"), that we may make available for your use in connection with the operation of your Caring Transitions Franchise.
THEREFORE, as a condition of Franchisee's use of the Website, you agree as follows:
Franchisee acknowledges that the franchise granted hereunder is otherwise non-exclusive and is granted subject to the terms and conditions of Sections 1.4 through 1.10 and 8.6 of this agreement.
Except as expressly described in this paragraph, Franchisee does not have any "exclusive territory" or any "exclusive," "protected," or "reserved" territorial or similar rights, and there is and will be no limitation on Franchisor's rights to locate and consent to the location of other Caring Transitions Franchises or other facilities of any type at any location, regardless of the distance from, impact on, or vicinity of, the franchised business or the number of Caring Transitions Franchises in an area or market.
Except as permitted by Sections 1.4 and 1.5 below, Franchisee may not provide or sell products or services in a franchise territory granted to another franchisee of the System.
Franchisee's right to exclusively operate the franchised business within Franchisee's Territory (subject to Sections 1.4 and 1.5 below) shall begin once Franchisee has completed Franchisor's initial training program (see Section 7.1 below) and the franchised business has become fully operational.
- 1.4 National Accounts.
The rights granted to Franchisee by this agreement do not include the exclusive right to offer or provide products or services to National Accounts, and National Accounts are hereby specifically excluded from Franchisor's territorial restrictions in Section 1.3 above.
Franchisee acknowledges that other franchisees of the System may provide products and services to National Accounts at or from locations in Franchisee's Territory.
A "National Account" means a special customer (which may be, but is not limited to, a national or regional customer, other large business, or government agency) designated as such by Franchisor from time-to-time in its business judgment.
- 1.5 Shared Referral Sources.
The rights granted to Franchisee by this agreement do not include the exclusive right to solicit referrals from and promote services to Shared Referral Sources, and Shared Referral Sources are hereby specifically excluded from Franchisor's territorial restrictions in Section 1.3 above.
Franchisee acknowledges that other franchisees of the System may solicit referrals from and promote their services to Shared Referral Sources located in Franchisee's Territory.
- (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
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, the territory granted to a franchisee is defined by postal codes, as outlined in Section 1.2 of the Franchise Agreement and detailed in Exhibit B. While franchisees are granted the right to operate exclusively within their territory once training is complete and the business is operational, this right is subject to certain conditions outlined in Sections 1.4 through 1.10 and 8.6 of the agreement. Specifically, the franchise is non-exclusive.
Caring Transitions franchisees do not have exclusive territorial rights beyond what is explicitly described in the agreement. Caring Transitions retains the right to establish or consent to the establishment of other Caring Transitions franchises or facilities, irrespective of their proximity to an existing franchised business or the number of franchises in a given area. Franchisees are restricted from providing or selling products or services in another franchisee's territory, except as permitted by Sections 1.4 and 1.5, which refer to National Accounts and Shared Referral Sources, respectively.
National Accounts, defined as special customers designated by Caring Transitions, are excluded from territorial restrictions, allowing other franchisees to service them within a franchisee's territory. Similarly, Shared Referral Sources are also excluded, enabling franchisees to solicit referrals and promote services in other territories. These exceptions mean that while a franchisee has a defined territory, Caring Transitions retains considerable flexibility in managing National Accounts and Shared Referral Sources across the franchise system.
After the franchise agreement terminates, the franchisee is restricted from operating a similar business within 15 miles of their former territory or any other Caring Transitions territory for two years. This non-compete clause underscores the importance of the defined territory during the active term of the agreement, as it forms the basis for post-termination restrictions aimed at protecting Caring Transitions's market and franchisee network.