Are there any limitations on Caring Transitions' rights to locate other franchises regardless of the distance from the franchised business?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The territorial protection granted under this Section does not extend to the solicitation of employees, and nothing in this agreement prohibits other franchisees of Franchisor from advertising for and soliciting employees in Franchisee's Territory.
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.
With Franchisor's prior written consent, Franchisee may provide products and services to National Accounts at or from locations in a franchise territory granted to another franchisee of the System.
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.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees generally do not receive exclusive territories. Caring Transitions retains the right to establish or permit other Caring Transitions franchises or facilities at any location, irrespective of their proximity to an existing franchised business, their potential impact, or the number of Caring Transitions franchises already present in the area. This means a franchisee's territory is not protected against direct competition from other Caring Transitions franchisees.
However, Caring Transitions franchisees are granted territorial protection, which is subject to certain conditions outlined in Sections 1.4 and 1.5 of the franchise agreement. This protection begins once the franchisee completes the initial training program and the franchised business is fully operational. The franchisee is restricted from offering or selling products or services within another franchisee's territory, except as permitted by Sections 1.4 and 1.5, which refer to National Accounts.
Specifically, the rights granted to a Caring Transitions franchisee do not include the exclusive right to serve National Accounts, which are excluded from territorial restrictions. Other franchisees may provide services to National Accounts within a franchisee's territory, and a franchisee may serve National Accounts within another franchisee's territory with prior written consent from Caring Transitions. This aspect is important for prospective franchisees to consider, as it allows for potential overlap and competition, particularly concerning large or regional clients designated as National Accounts by Caring Transitions.