In the event of a violation of the confidentiality agreement by a Caring Transitions franchisee, who is responsible for covering the court costs and attorney's fees incurred by the franchisor?

According to Caring Transitions' 2025 Franchise Disclosure Document, if a franchisee violates the confidentiality agreement, the franchisee is responsible for covering all court costs and reasonable attorney's fees incurred by Caring Transitions in obtaining specific performance or an injunction against the violation. This obligation underscores the importance Caring Transitions places on protecting its confidential information. Confidential information includes, but is not limited to, client identities and contact information, financial statements, sales results, income, expenses, and electronic data related to past, present, and future clients.

This provision means that a Caring Transitions franchisee must ensure they, their employees, agents, and professional advisors maintain strict confidentiality regarding the franchised business's sensitive information. The franchisee is responsible for any breaches of confidentiality by those they allow access to the information. This responsibility extends beyond the term of the franchise agreement, meaning even after the agreement ends, the franchisee remains liable for maintaining confidentiality.

For a prospective Caring Transitions franchisee, this highlights the need to implement robust confidentiality measures and training programs for all personnel who have access to confidential information. It also emphasizes the potential financial risk associated with any breach of confidentiality, as the franchisee could be liable for substantial legal costs incurred by Caring Transitions to enforce the confidentiality agreement. This is a standard practice in franchising, as franchisors need to protect their trade secrets and proprietary information.

Caring Transitions also requires its franchisees to have their Principals, directors, officers, and management employees sign confidentiality agreements at the commencement of their association with the franchisee. These agreements must be in a form approved by Caring Transitions, ensuring that all confidential information is held in strict confidence and used solely for the benefit of the franchisee and Caring Transitions. This requirement further reinforces the franchisor's commitment to protecting its confidential information and the franchisee's responsibility in upholding these standards.