Can Caring Transitions change the minimum insurance coverage limits during the term of the franchise agreement?

According to Caring Transitions's 2025 Franchise Disclosure Document, Caring Transitions retains the right to modify the minimum insurance coverage requirements for franchisees. Specifically, Caring Transitions can reasonably increase the required minimum insurance coverage, decrease the deductible, or require different or additional kinds of insurance. These changes can be made to reflect factors such as inflation, changes in liability standards, higher damage awards, or other relevant changes in circumstances.

Caring Transitions is obligated to provide franchisees with at least 30 days' notice before implementing any changes to the insurance requirements. This advance notice allows franchisees time to adjust their insurance policies accordingly and ensure they remain compliant with the franchise agreement.

It is important for prospective Caring Transitions franchisees to understand that insurance costs can potentially increase during the term of their franchise agreement if Caring Transitions exercises its right to adjust the minimum coverage requirements. Franchisees should factor in the potential for these changes when projecting their operating expenses and consider obtaining adequate coverage to protect their business. Failing to maintain the required insurance coverage can result in Caring Transitions obtaining the insurance on the franchisee's behalf and charging the franchisee for the cost, plus interest.