Does the Franchisee Acknowledgment Statement ask if the franchisee discussed their purchase of a Caring Transitions franchise with an attorney, accountant, or other professional advisor?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | Did you receive a copy of the signed the Franchise Agreement | or the remittance form | Franchise Disclosure Document at least 14 days before you or paid any money for the franchise? | |
|---|---|---|---|---|
| Yes | No | |||
| 2. | Did you read the franchise contracts and their exhibits? Yes | No | ||
| 3. | Do you understand everything in the franchise contracts and their exhibits? Yes If "No," what parts of (Attach additional pages if necessary.) | No the franchise contracts or their exhibits do you NOT understand? | ||
| 4. | Have you discussed your purchase of a Caring Transitions franchise with an attorney, accountant, or other professional advisor? Yes | No | ||
| 5. | If you answered "No" to Question 4, do account, or other professional advisor? Yes | you understand that you may consult with an attorney, No |
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the Franchisee Acknowledgment Statement does include a question regarding whether the prospective franchisee has discussed their potential investment with professional advisors. Specifically, question 4 on the Franchisee Acknowledgment Statement asks: "Have you discussed your purchase of a Caring Transitions franchise with an attorney, accountant, or other professional advisor?" The franchisee must answer "Yes" or "No".
This question is designed to ensure that franchisees have sought independent advice before making a significant financial commitment. Franchisors often include such questions to protect themselves from future claims that franchisees were not fully informed or aware of the risks involved. A "No" answer might prompt the franchisor to recommend or even require the franchisee to seek such advice before proceeding.
Furthermore, question 5 states, "If you answered 'No' to Question 4, do you understand that you may consult with an attorney, account, or other professional advisor?" This follow-up question reinforces the importance of seeking professional guidance and confirms that the franchisee is aware of their option to do so. This is a standard practice in franchising, as it encourages informed decision-making and reduces the likelihood of disputes arising from a lack of understanding.