Does the Franchisee Acknowledgment Statement ask if the franchisee understands the risks of investing in and operating a Caring Transitions franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit O This is an addendum that you will sign if you participate in the Winner's Circle program
Exhibit S Remittance Form you will send us along with your deposit
Exhibit P State-Specific Additional Disclosures and Riders
described in Item 5
EXHIBIT O
FRANCHISEE ACKNOWLEDGMENT STATEMENT
As you are aware, you have or are preparing to enter into a Franchise Agreement with C.T. Franchising Systems, Inc. (Franchisor) for the operation of a Caring Transitions® franchise. The purpose of this questionnaire is to determine whether any statements or promises were made to you, either verbally or in writing, that the Franchisor did not authorize and that may be untrue, inaccurate, or misleading. Please read each of the following questions carefully and provide honest and complete responses to each question.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to the 2025 Caring Transitions Franchise Disclosure Document, Exhibit O is the Franchisee Acknowledgment Statement. The purpose of this statement is to determine if any unauthorized statements or promises were made to the franchisee that may be untrue, inaccurate, or misleading. The franchisee is instructed to read each question carefully and provide honest and complete responses.
However, the excerpt does not explicitly state that the Franchisee Acknowledgment Statement includes a question asking if the franchisee understands the risks of investing in and operating a Caring Transitions franchise. The document focuses on unauthorized or misleading statements made by the franchisor.
A prospective franchisee should carefully review Exhibit O, the Franchisee Acknowledgment Statement, within the FDD and consider asking Caring Transitions for clarification on whether the statement covers the franchisee's understanding of investment risks. This is crucial for ensuring that the franchisee is fully aware of the potential challenges and financial implications before entering into the agreement.