What actions related to employee conduct could lead to termination of a Caring Transitions franchise agreement?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.20 Covenants of Employees and Agents. Franchisee shall require each of its management employees (except those individuals required to execute a Restrictive Covenant Agreement pursuant to section 15.9), at the time of the commencement of their association with Franchisee, to execute an "Employment Agreement" containing provisions:
- (a) requiring that all Confidential Information (as defined in section 10.1) that may be acquired by or imparted to the person in connection with their association with Franchisee (including the Manual, any proprietary software provided by Franchisor, and all information contained therein) be held in strict confidence and used solely for the benefit of Franchisee or Franchisor during their association with Franchisee and at all times thereafter;
- (b) prohi
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
Based on the 2025 Caring Transitions Franchise Disclosure Document, franchisees are required to have their management employees (with some exceptions) sign an "Employment Agreement." This agreement must include provisions that protect the confidentiality of Caring Transitions's confidential information and restrict the employee from soliciting Caring Transitions's clients.
Specifically, the Employment Agreement must require employees to hold all Confidential Information (defined as the Manual, proprietary software, and all information contained therein) in strict confidence. This information can only be used for the benefit of the franchisee or Caring Transitions during their association and at all times thereafter.
Additionally, the Employment Agreement must prohibit the employee from directly or indirectly soliciting any of Caring Transitions's clients for a period of two years after the termination of their employment. This includes soliciting clients for services that are the same as or similar to those offered by Caring Transitions. Failure to ensure employees adhere to these covenants could potentially lead to termination of the Caring Transitions franchise agreement.