What documentation must a Caring Transitions franchisee submit to the Franchisor before commencing business regarding insurance?

According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee must provide specific insurance documentation to Caring Transitions before commencing business operations. This includes certifications of insurance, along with a copy of the original policy, and a workers' compensation certificate of premium payment. These documents must demonstrate full compliance with the insurance requirements outlined in the franchise agreement.

The insurance policies, with the exception of Workers' Compensation Insurance, must have a deductible of no more than $1,000 and must name Caring Transitions as an additional insured. Furthermore, the insurance must be placed with a carrier approved in writing by Caring Transitions and cannot be canceled without providing thirty days' written notice to Caring Transitions.

It is critical for a prospective Caring Transitions franchisee to understand these insurance obligations, as failure to comply can prevent the franchisee from opening or operating their business. If a franchisee fails to obtain the required insurance, Caring Transitions has the option, but not the obligation, to obtain the insurance themselves and charge the franchisee for the cost, along with interest at a rate of 18% per annum or the highest rate allowed by law, whichever is less. Caring Transitions can also increase the minimum coverage, decrease the maximum deductible, or require different or additional kinds of insurance coverage with 30 days written notice to the franchisee.