Does the Caring Transitions agreement specify that the covenants in section 4 survive the termination of the agreement?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
The covenants in this section 4 will survive the expiration, termination, or transfer of this agreement.
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the covenants outlined in section 4 of the agreement do indeed survive the expiration, termination, or transfer of the agreement. This means that even after the franchise agreement ends, the franchisee is still bound by the restrictions and obligations detailed in that section.
Specifically, section 4 primarily concerns covenants that apply after the termination of the franchise agreement. These covenants place restrictions on the franchisee and related parties ('Covenantors') regarding competitive activities. The document specifies that these restrictions remain in effect for a defined period, preventing the franchisee from engaging in activities that could harm Caring Transitions' business interests, even after the formal agreement has ended.
This survival clause is a standard practice in franchising to protect the franchisor's brand, trade secrets, and customer relationships. Prospective Caring Transitions franchisees should carefully review section 4 to understand the full scope of these post-termination obligations, including the duration and geographic limitations of the non-compete provisions. Understanding these terms is crucial for planning future business ventures after the Caring Transitions franchise agreement concludes.