What is the duration of the Caring Transitions Right of First Refusal from the Effective Date of the agreement?

According to Caring Transitions' 2025 Franchise Disclosure Document, the Right of First Refusal automatically expires one year after the Effective Date of the agreement. This means that for a period of one year from the date the franchise agreement takes effect, a franchisee has the first opportunity to purchase an additional franchise territory should Caring Transitions decide to offer one within the franchisee's existing territory.

However, the right to exercise this option can be lost under certain conditions. If a bona fide prospective franchisee selects a territory that includes the existing franchisee's territory, Caring Transitions will notify the franchisee. To exercise the Right of First Refusal, the franchisee must send a signed Intent to Exercise Right of First Refusal within seven days of receiving the notice. The franchisee must also pay the balance of the franchise fee and return a signed copy of the current franchise agreement within a specific timeframe.

If the franchisee fails to meet these deadlines or if an Event Allowing Termination occurs and is not cured, the Right of First Refusal terminates automatically. This allows Caring Transitions to offer the franchise to another party without further obligation to the existing franchisee. Therefore, while the Right of First Refusal extends for one year, it is contingent upon the franchisee's compliance with the outlined procedures and the absence of any uncured breaches of the franchise agreement.