What is the Caring Transitions transfer fee?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee – Note 1 | The greater of either $15,000 or 10% of the purchase price, plus legal and administrative costs | Prior to consummation of transfer | Payable when you sell your franchise to, among other things, cover the expenses of training the franchise purchaser; no transfer fee is payable for transfers to a company you form for the convenience of ownership |
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee who sells their franchise will be charged a transfer fee. This fee is the greater of $15,000 or 10% of the purchase price, in addition to legal and administrative costs. This fee is due prior to the completion of the transfer.
The FDD indicates that the transfer fee covers the expenses of training the new franchise purchaser. However, the transfer fee is waived if the transfer is to a company the franchisee forms for ownership convenience.
Transfer fees are a common aspect of franchising, designed to compensate the franchisor for their time and expenses in approving the transfer and training the new franchisee. The fee amount can vary significantly among franchise systems, often calculated as a percentage of the sale price, a fixed sum, or a combination of both. Prospective Caring Transitions franchisees should consider the transfer fee and its implications when evaluating the potential resale value of their franchise.