Is there a geographic limit to the non-compete agreement for Caring Transitions franchisees?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
and ending on the second anniversary thereof (the "Restrictive Period"), directly or indirectly, for him/herself or through, on behalf of, or in conjunction with a Covered Person:
- (1) except as may be authorized under another franchise agreement in effect between Franchisee (or Covenantor) and Franchisor (including a successor agreement upon the renewal of the Franchise granted under the Franchise Agreement), own, maintain, operate, engage in, or have any interest in a Competitive Business that is or is intended to be located, or that operates, in or within 15 miles of the geographical boundaries of Franchisee's Territory; or
- (2) except as may be authorized under another franchise agreement in effect between Franchisee (or Covenantor) and Franchisor (including a successor agreement upon the
renewal of the Franchise granted under the Franchise Agreement), own, maintain, operate, engage in, or have any interest in a Competitive Business that is or is intended to be located, or that operates, in or within 15 miles of the geographical boundaries of any other Caring Transitions Franchisee's protected territory; or
(3) be employed by, or be engaged on a self-employed basis in, a Competitive Business that is or is intended to be located, or that operates, in or within 15 miles of the geographical boundaries of Franchisee's Territory; or
(4) be employed by, or be engaged on a self-employed basis in, a Competitive Business that is or is intended to be located, or that operates, in or within 15 miles of the geographical boundaries of any other Caring Transitions Franchisee's protected territory; or
(5) divert or attempt to divert any business or client of the Franchised Business to a Competitive Business or, for the benefit of a Competitive Business, have any commercial dealings with or solicit the custom of anyone who was a client of or received services from the Franchised Business at any time during the one-year period prior to the beginning of the Restrictive Period; or
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the non-compete agreement includes geographic limitations. During the restrictive period, which lasts for two years after the franchise agreement ends, franchisees (or related parties) are restricted from engaging in a competitive business within a specific radius. This radius extends 15 miles from the geographical boundaries of both the franchisee's territory and any other Caring Transitions franchisee's protected territory.
This restriction applies to various activities, including owning, maintaining, operating, or having any interest in a competitive business. It also prohibits being employed by or engaged on a self-employed basis in a competitive business within the specified 15-mile radius. Furthermore, franchisees are prohibited from diverting business or clients from the franchised business to a competitive business or soliciting customers of the franchised business for the benefit of a competitive business.
These non-compete terms are designed to protect Caring Transitions' market share and the interests of its franchisees by preventing unfair competition within and around their territories. A prospective franchisee should carefully consider these restrictions to understand the limitations on their business activities after the franchise agreement concludes, and how it might affect future business opportunities. It is also important to note that these restrictions can be modified by Caring Transitions, potentially impacting the franchisee's competitive activities.