What must a Caring Transitions franchisee do to obtain Franchisor consent for a specific action or request?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| C.T. FRANCHISING SYSTEMS, INC. ("we," "us," "our," or "Franchisor") and the undersigned franchise, ("you," "your," or "Franchisee"), currently are parties to a certain franchise agreement dated (the "Franchise Agreement") for the operation of a Caring Transitions franchised business designated Caring Transitions franchise no You have asked us to take the following action nor to agree to the following request: [insert as appropriate for renewal or transfer situation] |
|---|
| We have the right under the Franchise Agreement to obtain a general release from you (and, if |
| applicable, your owners) as a condition of taking this action or agreeing to this request. Therefore, |
| we are willing to take the action or agree to the request specified above if you (and if applicable, |
| your owners) give us the release and covenant not to sue provided below in this document. You |
| (and, if applicable, your owners) are willing to give us the release and covenant not to sue |
| provided below as partial consideration for our willingness to take the action nor agree to the |
| request described above. |
| Consistent with the previous introduction, you, on your own behalf and on behalf of your |
| successors, heirs, executors, administrators, personal representatives, agents, assigns, partners, |
| shareholders, members, directors, officers, principals, employees, and affiliated entities |
| (collectively, the "Releasing Parties"), hereby forever release and discharge us and our current |
| and former officers, directors, shareholders, principals, employees, agents, representatives, |
| affiliated entities, successors, and assigns (collectively, the "Franchisor Parties") from any and all |
| claims, damages (known and unknown), demands, causes of action, suits, duties, liabilities, and |
| agreements of any nature and kind (collectively, "Claims") that you and any of the other Releasing |
| Parties now have, ever had, or, but for this document, hereafter would or could have against any |
| of the Franchisor Parties (1) arising out of or related to the Franchisor Parties' performance of |
| their obligations under the Franchise Agreement before the date of your signature below or (2) |
| otherwise arising from or related to your and the other Releasing Parties' relationship, from the |
| beginning of time to the date of your signature below, with any of the Franchisor Parties. You, on |
| your own behalf and on behalf of the other Releasing Parties, further covenant not to sue any of |
| the Franchisor Parties on any of the Claims released by this paragraph and represent that you |
| have not assigned any of the Claims released by this paragraph to any individual or entity that is |
| not bound by this paragraph. |
| We also are entitled to a release and covenant not to sue from your owners. By his, her, |
| or their separate signature below, your transferring owners likewise grant to us the release and |
| covenant not to sue provided above. |
| *********************************** |
| Notwithstanding the above, nothing contained herein shall act as a release, estoppel or |
| waiver of any claim or liability arising under the Maryland Franchise Registration and Disclosure |
| Law. |
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to the 2025 Caring Transitions Franchise Disclosure Document, if a franchisee wants Caring Transitions to take a specific action or agree to a request, the franchisee (and their owners, if applicable) must provide a release and covenant not to sue. This means the franchisee agrees to release Caring Transitions from any claims or liabilities related to the Franchise Agreement or their relationship with Caring Transitions up to the date of signing the release.
This release covers all types of claims, known and unknown, and prevents the franchisee from suing Caring Transitions over these released claims. This requirement is in place because Caring Transitions has the right to obtain a general release from the franchisee as a condition of agreeing to the franchisee's action or request. The willingness of the franchisee to provide this release serves as partial consideration for Caring Transitions' agreement to the request.
In practical terms, a franchisee needs to carefully consider the implications before requesting action from the franchisor that would require them to sign a release. They should be confident that they have no current or potential future claims against Caring Transitions before proceeding. This is a fairly standard practice in franchising when significant changes or requests are made, as it protects the franchisor from potential legal issues arising from the action or request.
It's important to note the exception that nothing in the release acts as a waiver of any claim or liability arising under the Maryland Franchise Registration and Disclosure Law. This means that franchisees in Maryland retain their rights under that specific law, regardless of the general release provided to Caring Transitions.