Are there restrictions on soliciting clients outside of a Caring Transitions franchisee's territory?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
not solicit or accept orders inside your territory.
There are no restrictions on soliciting or accepting clients outside your territory and you may use any commercially reasonable channel of distribution, such as the Internet, telemarketing, or other direct marketing method to obtain and service clients outside your territory, other than as disclosed in this Item 12.
Your franchise agreement does not give you any option, right of first refusal, or similar right to acquire additional franchises, but you may purchase a right of first refusal to purchase an additional franchise territory. The price for a right of first refusal is $3,000, which would be credited toward the initial franchise fee if you exercise the right of first refusal. A right of first refusal will give you the right to purchase a specific territory first if another prospective purchaser shows an interest in purchasing the territory within 1 year after you purchase the right of first refusal. You would have 7 calendar days after receipt of notice to exercise the right. Caring Transitions must receive the entire balance of the then current initial franchise fee for the right of first refusal territory by the seventh day after you receive
the notice. A right of first refusal lasts for 1 year. The right of first refusal agreement is attached to this disclosure document as Exhibit K.
We may not
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, there are generally no restrictions on soliciting or accepting clients outside of a franchisee's territory. A franchisee may use any commercially reasonable channel of distribution, such as the Internet, telemarketing, or other direct marketing methods, to obtain and service clients outside their territory, except as otherwise disclosed in Item 12 of the FDD. This allows Caring Transitions franchisees to expand their reach beyond their exclusive territory and pursue business opportunities in other areas. However, franchisees must be aware of the exceptions and conditions outlined in Item 12.
Item 12 specifies that while franchisees can solicit outside their territory, they cannot operate their franchise in another franchisee's territory, which includes advertising, soliciting, offering, providing, or selling products or services in that other franchisee's territory. This means that while a Caring Transitions franchisee can market to and secure clients outside their designated area, they must not actively conduct business within another franchisee's exclusive protected territory. The exclusive territory granted to a franchisee for the base initial franchise fee will contain a population between 175,000 and 200,000. If the population of a territory exceeds 200,000, the franchisee must pay an additional $500 for all or part of every 1,000 people over 200,000.
Furthermore, the exclusivity of a Caring Transitions territory does not extend to National Accounts or shared referral sources. National Accounts are businesses or organizations with facilities not confined to a single franchisee's territory, and Caring Transitions retains the exclusive right to service these accounts or award the right to service them to any franchisee. Shared referral sources, such as attorneys or senior care facilities, can be solicited by all franchisees in a market, regardless of territory boundaries. Therefore, a franchisee can solicit these shared referral sources even if they are located within another franchisee's territory.
Prospective Caring Transitions franchisees should carefully review Item 12 of the FDD and seek clarification from the franchisor regarding any specific concerns about territorial rights, National Accounts, and shared referral sources. Understanding these provisions is crucial for developing a sound business strategy and avoiding potential conflicts with other franchisees.