Under what conditions can the Caring Transitions minimum royalty start date be extended?

According to Caring Transitions's 2025 Franchise Disclosure Document, the minimum royalty start date can be extended under specific conditions. The standard arrangement requires franchisees to begin paying the minimum royalty, which starts at $300 per month for the first 12 months and then increases to $500 per month, from the fifth day of the second month following completion of the initial training program at Caring Transitions's corporate headquarters. This initial deferral provides a short grace period to allow new franchisees to set up their business.

However, Caring Transitions offers an opportunity to extend this minimum royalty start date by an additional month. To qualify for this one-month extension, franchisees must meet several requirements. First, they must comply with Caring Transitions's System Standards for opening their business. This includes completing a business plan and engaging in recommended marketing activities, ensuring that the franchisee is proactively working to establish their business according to the franchisor's guidelines.

In addition to meeting the System Standards, franchisees must also sign a general release and be in full compliance with the Franchise Agreement. This indicates that the franchisee must not only be setting up their business correctly but also adhering to all contractual obligations and legal requirements outlined in the agreement. This extension provides a small incentive for new franchisees to quickly meet the System Standards for opening their business, but also protects Caring Transitions by ensuring the franchisee is in compliance with the Franchise Agreement.