What is the Caring Transitions franchisee's obligation to provide as partial consideration?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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| 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. |
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, as partial consideration for the franchisor's willingness to take a specific action or agree to a request, a franchisee must provide a release and covenant not to sue. This means the franchisee agrees to release Caring Transitions from any and all claims, damages, demands, causes of action, suits, duties, liabilities, and agreements of any nature. This release covers both known and unknown claims that the franchisee has, has ever had, or could have against Caring Transitions.
In addition to releasing Caring Transitions from claims, the franchisee also covenants not to sue Caring Transitions on any of the released claims. This covenant extends to the franchisee's successors, heirs, executors, administrators, personal representatives, agents, assigns, partners, shareholders, members, directors, officers, principals, employees, and affiliated entities. The release and covenant not to sue also apply to the franchisee's owners, who must provide a separate signature to grant the release and covenant.
However, the document specifies that nothing in the release and covenant not to sue acts as a release, estoppel, or waiver of any claim or liability arising under the Maryland Franchise Registration and Disclosure Law. This means that the franchisee retains their rights and protections under Maryland franchise law, despite the general release provided to Caring Transitions. This type of release is a fairly standard legal protection for franchisors when making accommodations for a franchisee.