What are a Caring Transitions franchisee's obligations upon termination or nonrenewal of the franchise agreement?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| u. Dispute resolution by arbitration or mediation | 16.2 | Except for certain claims, all disputes must be arbitrated in Hamilton County, Ohio (subject to state law); claims may not be consolidated with claims of other franchisees; parties waive right to jury trial and punitive damages; except for certain claims, all claims must be brought within 1 year, subject to state law. |
| v. Choice of forum | 18.4 | Except for claims arising under a franchise law of the state where the franchised business is located, all litigation or arbitration must be in Hamilton County, Ohio, subject to state law. |
| w. Choice of law | 18.3 Section in Franchise | Except for claims arising under a franchise law of the state where the franchised business is located, Ohio law applies, subject to state law. |
| Provision | Agreement | Summary |
| h. "Cause" defined - defaults which cannot be cured | 13.1, 13.2 | Non-curable defaults: failure to begin training within 90 days after franchise agreement signed, failure to complete training to our satisfaction, failure to open franchise within 90 days after you complete training, failure to maintain franchised business in continuous operation, certain assignments, abandonment, failure to comply with applicable law, unapproved transfers, misrepresentation, knowingly submitting false report or maintaining false books or records, knowing understatement of Gross Receipts, 3rd breach of any term(s), breach of §15.2, bankruptcy1 , seizure of or execution against your franchise, unsatisfied or unappealed judgment against franchisee, certain criminal misconduct, conduct which reflects negatively on the system, danger to public. |
| i. Your obligations on termination/nonrenewal | Article 14 | Stop operating franchise, stop using confidential information and trademarks, complete de-identification, return manuals, records, files, and materials containing marks, cancel assumed name registration, assign or cancel telephone number, obtain insurance tail coverage, pay outstanding amounts due and damages (also see r, below). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, Article 14 of the franchise agreement outlines the franchisee's obligations upon termination or nonrenewal. These obligations include ceasing operation of the franchise, discontinuing the use of Caring Transitions's confidential information and trademarks, and completing de-identification procedures, which likely involve removing Caring Transitions branding from the business location and materials.
Additionally, the franchisee must return all manuals, records, files, and materials that contain Caring Transitions's marks. They are also required to cancel any assumed name registrations associated with the franchise and assign or cancel the franchise's telephone number. Furthermore, the franchisee is obligated to obtain insurance tail coverage, which extends liability protection beyond the termination date.
Finally, the franchisee must pay all outstanding amounts due to Caring Transitions, as well as any damages as determined by the franchise agreement or applicable law. These obligations are typical in franchise agreements to protect the brand and ensure a smooth transition upon termination or nonrenewal.