Who is the Caring Transitions franchise agreement binding upon?

According to the 2025 Caring Transitions Franchise Disclosure Document, the franchise agreement is between C.T. Franchising Systems, Inc. as the Franchisor, and the individual(s) or entity identified on Exhibit A as the Franchisee. This means that both Caring Transitions as the franchisor and the franchisee (whether an individual or a business entity) are legally bound by the terms and conditions outlined in the franchise agreement. Exhibit A, which is attached to the agreement, specifically identifies the franchisee.

For a prospective Caring Transitions franchisee, this means that upon signing the franchise agreement, they are entering into a legally binding contract with C.T. Franchising Systems, Inc. The franchisee is obligated to adhere to all the terms and conditions specified in the agreement, including those related to operating the franchise, using Caring Transitions's system and marks, and paying fees. Similarly, Caring Transitions is obligated to provide the support, training, and resources outlined in the agreement.

If the franchisee is not a limited liability business entity when signing the agreement, they must transfer their interest in the franchised business to such an entity within 90 days. The individual(s) who initially signed the agreement must maintain a controlling interest in the limited liability entity, and one of them must act as the principal executive or manager. Furthermore, any new principal of the franchisee must execute an agreement guaranteeing the franchisee's obligations under the franchise agreement.

This arrangement ensures that Caring Transitions can enforce the terms of the franchise agreement against both the individual franchisee and, if applicable, the business entity operating the franchise. It also protects Caring Transitions's interests by requiring key individuals to remain involved and accountable for the franchise's performance.