Caring Transitions Franchise Costs, Fees & FDD

Year Business Began: 2006

Franchising Since: 2006

Headquarters: Cincinnati, Ohio

Estimated Number of Units: 375

Franchise 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.
Training Overview: After franchisees sign the franchise agreement and pay the initial franchise fee, they will begin the “Onboarding Program.” The Onboarding Program is a preliminary training phase that franchisees will engage in at home. For the first Caring Transitions franchise, the franchisor will train up to two people to operate the franchise. All of the training is conducted at the franchisor’s corporate headquarters in Cincinnati, Ohio. The initial training program is mandatory—franchisees, or the person designated as responsible for the general oversight and management of the franchised business, must complete it to the franchisor’s satisfaction, or it has the right to terminate the franchise. At the present time, the franchisor does not provide or require franchisees to attend additional training programs after their successful completion of the initial training program, although it has the right to require additional training and to charge franchisees a reasonable fee for it.

Territory Granted: The franchisor will grant franchisees an exclusive protected territory, which will be delineated by postal codes. The exclusive territory franchisees will receive for the base initial franchise fee will contain a population of between 175,000 and 200,000. If the population of the territory exceeds 200,000, franchisees must pay an additional $500 for all or part of every 1,000 people over 200,000. There is no maximum limit on the population of the territory. Although the franchisor is not obligated to do so under the Franchise Agreement, it may permit franchisees to operate their franchise in areas outside their territory that are not part of another Caring Transitions franchisee’s territory. The exclusivity of the territory does not extend to customers that the franchisor identifies as “National Accounts.”

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 may 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). Franchisees may not compete with or own an interest in any business that competes with, their franchise anywhere during the term of the Franchise Agreement, or in or within 15 miles of the territory or any other franchisee’s territory for two years after the expiration or termination of the Franchise Agreement.

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

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisor’s note, lease, or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$53,900	$53,900
Furniture and Equipment	$500	$1,000
Computer System	$1,000	$3,000
Travel & Living Expenses While Training	$2,000	$4,000
Initial Rent, Telephone, Bank and Other Deposits	$350	$2,000
Additional Funds – 6 months	$4,000	$38,000
Grand-Opening Promotion	$3,000	$4,000
Sales Employee	$2,500	$2,500
Web Hosting Service	$100	$100
Monthly Office Rental Payment	$200	$1,000
Insurance	$2,000	$4,000
Certified Relocation Transition Specialist Training and Test	$650	$3,000
Membership and Association Fees	$500	$500
Estatesales.org Elite Package	$60	$150
ESTIMATED TOTAL	$70,760	$117,150

 
Other Fees

Type of Fee	Amount
Royalty Fee	6% of gross revenues; $300/month minimum for 12 months, $500 monthly minimum thereafter.
National Branding Fee	2% of gross revenues; $350/month minimum.
Local Advertising	At least $399 a month during the first 12 months of operation on local marketing with a designated supplier; 4% of gross receipts on an annual basis thereafter.
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 $15,000 or 3% of the purchase price, plus legal and administrative costs.
Lead Referral Fee	$10,000
Right of First Refusal Fee	$3,000
Formation of the Business Entity	Variable.
Electronic Copies of Marketing Materials	Variable.
Technology/Software License Fee	$250 monthly.
Certified Relocation Transition Specialist Continuing Education Requirements	$650 - $3,000 annually.
Financial Education Presentation	$250
EstateSales.org	$60 - $150 monthly.
Web Hosting Service	$100 monthly.
Membership and Association Fees	$1,500 (as incurred)
Franchisee Meetings	Currently $650 per person.
Late Fee	Greater of $100 or 10% of payment; $50 for ACH payments returned for insufficient funds; $100 for late revenue reports and business records.
Interest	In addition to the late fee, any payments more than 30 days late accrue interest at the rate of 18% per year.
Customer Refunds	Amount of expense advanced plus 18% interest.
Audit Fee	Cost of audit plus 18% interest on underpayment.
Territory Amendment Fee	$10,000
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.
Step-In Fees	$500 per day if incurred.
Liquidated Damages	The average monthly royalty and branding fees from the prior 12 months.

The above information has been compiled from the FDD of Caring Transitions. Year of FDD: 2025.
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