What is a Caring Transitions franchisee prohibited from doing with any improvements they develop?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee or any of its Principals, affiliates, directors, officers, or employees conceives, develops, or acquires any improvements or additions to the System or the services or products offered by or the method of operation of a Caring Transitions Franchise, or any advertising or promotion ideas related to a Caring Transitions Franchise or the franchised business (collectively, "Improvements"), Franchisee shall, in each instance, promptly and fully disclose the Improvement to Franchisor without disclosure of the Improvement to others, and obtain Franchisor's written approval before using the Improvement.
Any Improvement may be used by Franchisor and Caring Transitions franchisees without any obligation to Franchisee or its Principals, affiliates, directors, officers, or employees for royalties, licensing fees, or other compensation.
Franchisee shall assign to Franchisor or Franchisor's designee(s), without charge, all rights, including the right to grant sublicenses, to all Improvements.
If for any reason Franchisee and not Franchisor is deemed to own any right to an Improvement, then this agreement will operate as an agreement to irrevocably transfer and assign all rights in and to the Improvement.
Franchisee shall take no steps to appropriate any Improvement for itself.
Franchisee shall, at Franchisor's request, execute all assignments, certificates or other instruments (and, if necessary, require its Principals, affiliates, directors, officers, employees and independent contractors to execute such documents as well) as Franchisor may from time-to-time deem necessary or desirable to evidence, establish, maintain, perfect, protect, enforce or defend Franchisor's rights, title or interest in or to any Improvement or to otherwise carry out the provisions of this paragraph.
In return, Franchisor shall authorize Franchisee to use any Improvement developed by Franchisor or another Caring Transitions franchisee that Franchisor makes part of the System.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee is prohibited from taking steps to appropriate any improvements they develop for themselves. Improvements in this context refer to any additions to the Caring Transitions system, services, products, methods of operation, or advertising/promotional ideas related to the franchise.
Specifically, if a franchisee or their principals, affiliates, directors, officers, or employees come up with any improvements, they must promptly disclose these to Caring Transitions without revealing them to others first. The franchisee needs to obtain written approval from Caring Transitions before using the improvement in their own business. Caring Transitions and its franchisees can then use any such improvement without owing any royalties, licensing fees, or other compensation to the originating franchisee.
Furthermore, the franchisee is required to assign all rights to these improvements, including the right to grant sublicenses, to Caring Transitions or its designee without any charge. If, for any reason, the franchisee is deemed to own any rights to an improvement, the agreement serves as an irrevocable transfer of those rights to Caring Transitions. The franchisee must also execute any documents necessary to establish, maintain, protect, and enforce Caring Transitions' rights to the improvement.