Under what condition can Caring Transitions terminate a Fund?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Cooperatives established by Franchisor are intended to be of perpetual duration. However, Franchisor maintains the right to terminate any Cooperative. Franchisor shall use any unexpended monies from the terminated Cooperative only for advertising or promotional purposes for the System.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, Caring Transitions maintains the right to terminate any Cooperative established by them. However, any unexpended monies from the terminated Cooperative must be used only for advertising or promotional purposes for the Caring Transitions system.
This means that while Caring Transitions can shut down a Cooperative, they cannot repurpose the funds for anything other than marketing and advertising to benefit the franchise system. This provides some assurance to franchisees that their contributions will continue to support the brand even if a Cooperative is dissolved.
It is important for a prospective franchisee to understand the conditions under which these cooperatives can be terminated and how the funds will be managed in such a scenario. This information helps franchisees assess the potential risks and benefits associated with contributing to these cooperatives.