Does Caring Senior Service have the right to be acquired?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to establish or operate, or franchise any other franchisee to establish or operate, a Business under the System at any location outside of the Protected Territory. We (and any affiliates that we periodically might have) have the right:
- (a) to establish and operate, and grant rights to other franchisees to establish and operate, Caring Senior Service Businesses or similar businesses at any locations outside of the Protected Territory and on any terms and conditions we deem appropriate;
- (b) to sell services and products identical or similar to, or dissimilar from, those your Franchised Business sells, whether identified by the Proprietary Marks or other trademarks or service marks through alternative distribution channels, wherever located or operating. The term "alternative distribution channels" includes the Internet, catalog sales, telemarketing or other direct marketing sales;
- (c) to purchase or otherwise acquire the assets or controlling ownership of one (1) or more businesses identical or similar to your Business, some or all of which might be located anywhere, including within the Protected Territory;
- (d) to be acquired; and
- (e) to engage in any other business activities not expressly prohibited by this Agreement, both within and outside the Protected Territory.
You may not relocate the Business from the approved site, except as provided above. Pursuant to this Agreement, you may sell the Approved Services to clients and prospective clients located anywhere but who choose to use your Business. You shall be prohibited from engaging in any promotional activities or selling any products or services, whether directly or indirectly, through or on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system (collectively, the "Electronic Media"); through catalogs or other mail order devices sent or directed to clients or prospective clients located anywhere; or by telecopy or other telephonic or electronic communications, including tollfree numbers, directed to or received from clients or prospective clients located anywhere, without our consent. While you may place advertisements in printed media and on television and radio that are targeted to clients and prospective clients located within the Protected Territory, you will not be deemed to be in violation of this Agreement if those advertisements, because of the natural circulation of the printed media or reach of television and radio, are viewed by prospective clients outside of the Protected Territory.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, Caring Senior Service has the right to be acquired. The franchise agreement specifies that Caring Senior Service can be acquired by another entity.
This means that a prospective franchisee should be aware that the ownership of the Caring Senior Service franchise system could change during the term of their franchise agreement. While the new ownership would be obligated to fulfill the existing franchise agreements, the vision, strategy, and support systems of the franchise could evolve under new leadership.
The agreement also stipulates that the franchisee waives any claims or damages related to the loss of association with Caring Senior Service in the event of an acquisition. This includes claims related to divided loyalty, breach of fiduciary duty, fraud, breach of contract, or breach of the implied covenant of good faith and fair dealing. This is a significant point for potential franchisees to consider, as it limits their legal recourse in the event they are unhappy with the changes that follow an acquisition.