Under what condition must a Caring Transitions franchisee contribute to a Local Cooperative Advertising fund?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Local Cooperative Advertising | Up to 3% of your Gross Receipts unless a majority of the cooperative members agree on a higher contribution – Note 3 | Monthly | If an advertising cooperative is established or operating in your area, you must contribute |
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- Either we or the advertising cooperative will determine the amount of your monthly cooperative advertising contribution, but it cannot exceed 3% of your Gross Receipts unless a majority of the cooperative members agree on a higher contribution. Your cooperative contribution will not be credited toward your national branding fee. Each member of an advertising cooperative will have one vote for each franchise they own. Each franchised business operated by us or an affiliate of ours in an area in which an advertising cooperative has been established, if any, will contribute to the cooperative on the same basis as other members of that cooperative. As of the date of this disclosure document, we have not established any advertising cooperatives.
Source: Item 6 — OTHER FEES (FDD pages 13–16)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, a franchisee is required to contribute to a Local Cooperative Advertising fund if an advertising cooperative is established or operating in their area. The contribution can be up to 3% of the franchisee's Gross Receipts, unless a majority of the cooperative members agree on a higher contribution.
The FDD specifies that either Caring Transitions or the advertising cooperative will determine the amount of the monthly contribution, but it cannot exceed the 3% threshold without the majority agreement. It's important to note that the cooperative contribution will not be credited toward the franchisee's national branding fee. Each member of the advertising cooperative has one vote for each franchise they own, ensuring that larger franchisees have a proportionally larger say in cooperative decisions.
As of the date of the 2025 Franchise Disclosure Document, Caring Transitions has not established any advertising cooperatives. However, if one is established in the future, each franchised business operated by Caring Transitions or its affiliates in that area will contribute to the cooperative on the same basis as other members. This ensures that the franchisor also participates in and contributes to the local advertising efforts.
Prospective franchisees should inquire about the likelihood of a local advertising cooperative being established in their territory and how these funds will be managed and utilized to benefit the franchisees in that area. Understanding the potential costs and benefits of participating in a cooperative advertising fund is crucial for budgeting and marketing strategy.