Under what condition is a Caring Transitions franchisee required to 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 one is established and 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 also clarifies 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 of the members. It's important to note that these cooperative advertising contributions will not be credited toward the franchisee's national branding fee.
Each member of the advertising cooperative gets one vote per franchise they own. If Caring Transitions or one of its affiliates operates a franchised business in an area with an established advertising cooperative, they will contribute to the cooperative on the same basis as other members. However, as of the date of the 2025 disclosure document, Caring Transitions has not yet established any advertising cooperatives.