Under what condition is no transfer fee payable for a Caring Transitions franchise?
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's 2025 Franchise Disclosure Document, a transfer fee is generally required when a franchisee sells their franchise. This fee is the greater of $15,000 or 10% of the purchase price, in addition to legal and administrative costs. This fee is intended to cover Caring Transitions's expenses for training the new franchise owner.
However, the FDD specifies an exception to this rule. A Caring Transitions franchisee will not have to pay a transfer fee if the franchise is transferred to a company that the franchisee forms for the convenience of ownership.
This provision is fairly standard in franchising. It allows franchisees to incorporate their business for legal and tax purposes without incurring a significant fee. Prospective Caring Transitions franchisees should note this exception, as it provides flexibility in how they structure their business ownership.