Does the Caring Transitions agreement survive the expiration, termination, or transfer 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, certain covenants within the franchise agreement do indeed survive the expiration, termination, or transfer of the agreement. Specifically, the covenants outlined in section 4 of the agreement remain in effect even after the franchise relationship ends.
These covenants primarily relate to non-competition and protection of Caring Transitions' business interests. Franchisees and their associated parties (Covenantors) are restricted from engaging in activities that could harm the Caring Transitions brand or business, such as operating a competitive business within a certain radius of another Caring Transitions franchise, or soliciting clients of the Franchised Business. These restrictions apply for a specified period after the termination or expiration of the franchise agreement.
This survival clause is a standard practice in franchising to protect the franchisor's brand, customer relationships, and overall business model. Prospective Caring Transitions franchisees should carefully review section 4 of the franchise agreement to understand the specific restrictions and their duration, as these obligations will continue even after they are no longer operating a Caring Transitions franchise. Understanding these post-termination obligations is crucial for planning future business ventures after leaving the Caring Transitions system.