Does the Caring Transitions agreement specify any restrictions on the location of the limited liability business entity?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
s Principals or governing body authorizing the execution of this agreement.
(7) The name of the Limited Liability Entity may not contain any of the words CARING TRANSITIONS, CARING, TRANSITIONS, or CT in any order, any variation thereof, or any of the other Marks.
(b) If Franchisee is not a limited liability business entity when it signs this agreement, then within 90 days after signing this agreement, Franchisee shall transfer all of its interest in the Franchised Business and all of its rights and obligations under this agreement to a limited liability business entity, comply with all of the requirements in subparagraph 7.10(a), and comply with the following additional requirements:
- (1) The individual(s) who executed this agreement as Franchisee shall beneficially own a controlling interest in the limited liability business entity and shall not diminish his/her/their ownership Interest therein, except as may be required by law.
- (2) One of the individuals who executed this agreement as Franchisee shall act as the principal executive (or manager) and operating officer of the limited liability business entity.
- (3) Franchisee shall reimburse Franchisor for actual legal costs incurred by Franchisor in approving and effecting the transfer to the limited liability business entity.
(c) At all times while this agreement is in effect:
- (1) The limited liability business entity shall not operate any other business or engage in any other business activities except the operation of one or more Caring Transitions Franchises.
- (2) Franchisee shall not cause or permit any of provision of its organizational or governing documents to be modified or restated without Franchisor's prior written approval.
- (3) Within ten days after Franchisor's request or after any change in any information on the Principal List, Franchisee shall provide Franchisor with an updated list of principals.
- (4) Upon request, Franchisee shall provide Franchisor with true and complete copies, certified by the Designated Individual, of Franchisee's organizational and governing documents.
- (5) Each new Principal of Franchisee must execute an agreement, in a form prescribed by Franchisor, unconditionally guaranteeing the full payment of Franchisee's obligations under this agreement and agreeing to be jointly and severally bound by all the provisions of this agreement, including the Covenants After Termination.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to the 2025 Caring Transitions Franchise Disclosure Document, there are some restrictions related to the limited liability business entity. If a franchisee is a limited liability business entity when signing the agreement, it must be a newly organized entity that has never operated any other business. The entity's governing documents must state that its activities are confined exclusively to operating one or more Caring Transitions franchises.
If the franchisee is not a limited liability entity when initially signing the agreement, they have 90 days to transfer their interest in the franchised business to a limited liability business entity. The individuals who originally signed the agreement must maintain a controlling interest in the entity and one of them must act as the principal executive and operating officer.
At all times while the agreement is in effect, the limited liability entity cannot operate any other business besides the Caring Transitions franchise. The franchisee also cannot modify the organizational documents without prior written approval from Caring Transitions. The name of the limited liability entity cannot contain the words "CARING TRANSITIONS", "CARING", "TRANSITIONS", or "CT", or any variation of these words, or any of the other Caring Transitions marks.