What is the third gross receipt target a Caring Transitions franchisee must meet to qualify for a rebate?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
sarily coincide with a calendar year. For example, a Year may be the period from April 1, 2024 through March 31, 2025, or from July 1, 2024 through June 30, 2025.
- (c) The "Rebate Period" begins on the Commencement Date and ends on the day before the fifth anniversary of the Commencement Date.
-
- As an incentive for Franchisee to fully develop the Franchised Business and the Territory, if Franchisee attains:
- (a) at least $900,000 of cumulative Gross Receipts during the two-Year period after the Commencement Date, then Franchisor will rebate to Franchisee $10,000 of the Franchise Fee;
- (b) at least $1,600,000 of cumulative Gross Receipts during the three-Year period after the Commencement Date and qualified for a rebate under subparagraph (a), then Franchisor will rebate to Franchisee an addit
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee must attain at least $2,300,000 in cumulative gross receipts during the four-year period after the Commencement Date to qualify for the third rebate. This is contingent on the franchisee having already qualified for rebates under subparagraphs (a) and (b).
In practical terms, this means that a Caring Transitions franchisee has the opportunity to earn back a portion of their initial franchise fee by achieving certain revenue milestones within the first few years of operation. The third milestone requires a cumulative gross receipt of $2,300,000 within four years, building upon the previous milestones of $900,000 within two years and $1,600,000 within three years.
It's important to note that these rebates are not guaranteed and are subject to strict compliance with the Franchise Agreement. The franchisee must meet all obligations, including timely reporting of gross receipts and payments of royalties and fees. Failing to meet these requirements or defaulting on any agreement with Caring Transitions can render the franchisee ineligible for the rebates and may even require the return of any rebates already received.
The rebate structure serves as an incentive for Caring Transitions franchisees to actively develop their franchised business and territory. By reaching these gross receipt targets, franchisees can reduce their initial investment and potentially improve their overall profitability. However, prospective franchisees should carefully consider the feasibility of achieving these targets based on their market conditions and business capabilities.