Must the transferee of a Caring Senior Service franchise purchase all assets used in the business?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) the transferee purchasing all of the assets used in the Business in accordance with all applicable bulk sales legislation and assuming all of your business liabilities;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 39–45)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, if a franchisee transfers their franchise to a new owner, the transferee is required to purchase all assets used in the business. This condition is part of the requirements that must be met for the transfer to be approved by Caring Senior Service. Additionally, the transferee must assume all of the seller's business liabilities.
This requirement ensures consistency and continuity in the operation of the Caring Senior Service franchise. By purchasing all assets, the new franchisee can maintain the standards and quality of service expected by Caring Senior Service. It also protects the brand's reputation and operational integrity.
Besides purchasing the assets and assuming liabilities, the transferee must also execute the then-current franchise agreement, complete the required training at their own expense, and demonstrate that they meet Caring Senior Service's standards for franchisees. The transferring franchisee must also settle all outstanding debts with Caring Senior Service and its affiliates, and execute a general release of Caring Senior Service and its personnel. The franchisee must also pay Caring Senior Service a transfer fee equal to 20% of the then-current franchise fee.