What are some examples of non-curable defaults that could lead to termination of the Caring Transitions franchise agreement?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| h. "Cause" defined - defaults which cannot be cured | 13.1, 13.2 | Non-curable defaults: failure to begin training within 90 days after franchise agreement signed, failure to complete training to our satisfaction, failure to open franchise within 90 days after you complete training, failure to maintain franchised business in continuous operation, certain assignments, abandonment, failure to comply with applicable law, unapproved transfers, misrepresentation, knowingly submitting false report or maintaining false books or records, knowing understatement of Gross Receipts, 3rd breach of any term(s), breach of §15.2, bankruptcy1 , seizure of or execution against your franchise, unsatisfied or unappealed judgment against franchisee, certain criminal misconduct, conduct which reflects negatively on the system, danger to public. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, certain defaults under the franchise agreement cannot be cured and may lead to immediate termination. These non-curable defaults include failing to begin training within 90 days of signing the franchise agreement, failing to complete training to Caring Transitions's satisfaction, and failing to open the franchise within 90 days after completing training.
Other non-curable defaults include failing to maintain continuous operation of the franchised business, certain unauthorized assignments or abandonment of the franchise, and failure to comply with applicable laws. Additionally, unapproved transfers of the franchise, misrepresentation or submission of false reports, knowing understatement of gross receipts, and a third breach of any term within the agreement are also considered non-curable defaults.
Further, engaging in certain criminal misconduct, conduct that reflects negatively on the Caring Transitions system, or actions that endanger the public can result in termination. Bankruptcy, seizure of the franchise, or an unsatisfied judgment against the franchisee also constitute non-curable defaults. A franchisee should be aware of these potential pitfalls and ensure full compliance with the franchise agreement to avoid termination.