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Caring Transitions Franchise Costs & Fees

Date of Incorporation: 2006
Franchising Since: 2006
Headquarters: Cincinnati, Ohio

Business Description: C.T. Franchising Systems, Inc. is the franchisor. A Caring Transitions franchise organizes and conducts sales of estate assets, personal belongings, and household goods and provides transition services, liquidations, and moving management services for individuals, businesses, and organizations.

Franchise Offer: The franchisor offers franchises to operate a business that provides the previously mentioned services under the trade name “Caring Transitions.”

Financial Assistance: Stock Yards Bank & Trust Company (SYBTC) will finance up to $15,000 of the initial franchise fee for a Caring Transitions franchise if the franchisor secures it with an equivalent amount of deposit in an account with SYBTC. The franchisor will secure the loam only if the franchisee meets its credit standards and satisfies the franchisor that after diligent efforts the franchisee has been unable to obtain financing from other sources. In rare circumstances, the franchisor may directly finance up to $15,000 of the initial franchise fee for one franchise, if it determines that the franchisee’s previous employment and business experience and other factors will make him/her an extraordinary Caring Transitions franchisee, the franchisee meets credit standards, and the franchisee satisfies the franchisor that after diligent efforts the franchisee has been unable to obtain financing from other sources, including SYBTC. Except as disclosed, the franchisor does not offer financing that requires franchisees to confess judgment or waive a defense against the franchisor, does not arrange financing from other sources, and does not receive direct or indirect payments to place financing.

Training and Assistance: The Jump Start Program is a preliminary training phase that franchisees will engage in at home. The franchisor will train up to 2 people to operate the franchise: the franchisee (or, if the franchisee is not an individual, for the person designated by the franchisee as responsible for the general oversight and management of the franchised business) and the manager. All of the training after the Jump Start program is conducted at corporate headquarters in Cincinnati, Ohio. The franchisor may hold regional and/or national meeting with its support personnel and franchisees to discuss sales techniques, service procedures, personnel issues, marketing methods, and to introduce new management tools, marketing programs, and promotional items.

Territory: The franchisor will grant franchisees an exclusive protected territory delineated by postal ZIP codes. The territory franchisees will receive for the base initial franchise fee will contain a population of up to 175,000. If the population of the territory exceeds 175,000, franchisees must pay an additional $500 for all or part of every 1,000 people over 175,000

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees satisfy the required pre-conditions to renewal, the franchisor will offer them the right to obtain 2 additional 10-year terms.

Obligations and Restrictions: The franchisor does not require that franchisees personally supervise the franchised business, although it recommends that they do so. The franchised business must be directly supervised “on-premises” by a manager who has been approved by the franchisor and has successfully completed the training program. Franchisees are required to offer and sell only those products and services that the franchisor has authorized. Franchisees many not use the premises on which the franchised business is located for any purpose other than the operation of the franchised business and the sale of authorized products and services (this restriction does not apply to the operation of one of the franchisor’s affiliates’ franchises, or if franchisees operate the franchised business from their home).

Estimated Number of Units: 170

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $42,900 $48,900
Furniture and Equipment $500 $1,000
Computer System $1,000 $3,000
Travel & Living Expenses While Training $750 $1,500
Initial Rent, Telephone, Bank and Other Deposits $350 $2,000
Additional Funds – 6 months $4,000 $18,000
Pre-Opening Promotion $3,000 $4,000
Technology/Software Licensing Fee $600 $600
Web Hosting Service $100 $100
Monthly Office Rental Payment $200 $1,000
Insurance $1,000 $3,000
Certified Relocation Transition Specialist Training and Test $850 $850
Membership and Association Fees $500 $500 $80 $80
ESTIMATED TOTAL $55,850 $84,530
Other Fees
Type of Fee Amount
Royalty Fee 5% of Gross Revenues; $300/month minimum.
National Branding Fee 2% of Gross Revenues; $350/month minimum.
Local Cooperative Advertising Up to 3% of Gross Revenues unless a majority of the cooperative members agree on a higher contribution.
Transfer Fee The greater of either $10,000 or 3% of the purchase price, plus legal and administrative costs.
Right of First Refusal Fee $3,000
Formation of the Business Entity Variable.
Electronic Copies of Marketing Materials Variable.
Technology/Software License Fee $600 - $1,200
Certified Relocation Transition Specialist Training License $799
Late Fee Greater of $50 or 10% of payment.
Interest 18%
Customer Refunds Amount of expense advanced plus 18% interest.
Audit Fee Cost of audit plus 18% interest on underpayment.
Sales/Use Taxes Variable.
Reimbursement Amount of expense advanced plus 18% interest.
Legal Expenses Amount of expense advanced plus 18% interest.
Indemnification Amount of expense advanced plus 18% interest.

The above information has been taken from the FDD of Caring Transitions. Year of FDD: 2015

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