Does the Caring Transitions agreement specify that the covenants in section 4 survive the transfer of the agreement?

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, either through its natural expiration, termination for any reason, or transfer of ownership, the restrictions and obligations detailed in section 4 remain in effect.

Specifically, section 4 primarily addresses covenants that apply after the termination of the franchise agreement. These covenants typically include non-compete clauses and restrictions on soliciting or conducting business with existing Caring Transitions clients or within a certain radius of other Caring Transitions franchise territories. The fact that these covenants survive the transfer of the agreement is significant because it ensures that any new owner or operator of the franchise is also bound by these restrictions. This protects Caring Transitions' brand, customer relationships, and franchise network from potential unfair competition, even after a change in ownership.

For a prospective franchisee, this survival clause has important implications. If they decide to sell their Caring Transitions franchise, they need to be aware that the covenants in section 4 will continue to apply to them, potentially limiting their ability to engage in similar businesses or solicit former clients. Additionally, any potential buyer of the franchise should also be fully informed about these surviving covenants, as they will be bound by them upon acquiring the franchise. This provision is fairly standard in franchising to protect the brand and other franchisees in the system.