What acknowledgement must both the franchisee and transferee franchisee provide in writing regarding Caring Transitions' involvement in the transfer?

According to Caring Transitions' 2025 Franchise Disclosure Document, both the franchisee and the transferee franchisee must acknowledge in writing that Caring Transitions was not involved in the negotiation of the transfer. This written acknowledgement must also state that Caring Transitions does not guarantee the accuracy of any information provided by the franchisee to the transferee franchisee. Furthermore, Caring Transitions makes no representations regarding the transferee franchisee's likelihood of success in operating the franchise.

This requirement protects Caring Transitions from liability related to the transfer process and any potential misrepresentations or unrealistic expectations set by the franchisee. By having both parties acknowledge this in writing, Caring Transitions ensures that the transferee franchisee understands that they are assuming the franchise at their own risk, based on their own due diligence and assessment of the opportunity.

For a prospective franchisee, this means they cannot rely on Caring Transitions to validate the information provided by the selling franchisee during a transfer. It is crucial for the potential transferee to conduct thorough independent research and seek professional advice before completing the purchase. This includes reviewing financial records, assessing market conditions, and understanding the obligations and responsibilities outlined in the franchise agreement. This is a fairly standard clause in franchise agreements, as franchisors typically want to avoid liability for franchisee-to-franchisee transactions.