If any provision of the Caring Transitions agreement relating to assignment of the franchise is inconsistent with state franchise law, which law applies?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
If any provision of this agreement relating to termination, nonrenewal or assignment of the franchise or choice of law, jurisdiction or venue is inconsistent with any applicable state franchise investment law, rules or regulations, such applicable state law shall apply.
Any addendum to this agreement required by the regulatory authorities of any state for the purpose of disclosing salient provision of such state's law is hereby made a part hereof.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, if any part of the franchise agreement concerning the assignment of the franchise is not consistent with state franchise laws, then the state law will take precedence. This also applies to provisions regarding termination, nonrenewal, choice of law, jurisdiction, or venue.
For a prospective franchisee, this means that the specific state laws where the franchise operates can override the standard terms outlined in the Caring Transitions franchise agreement. This is particularly important when considering the transfer or sale of the franchise, as state regulations can impose different requirements or restrictions than those initially agreed upon.
Caring Transitions also notes that any addendum to the agreement required by state regulatory authorities to disclose important provisions of state law is automatically included as part of the agreement. Therefore, franchisees should carefully review any state-specific addenda to understand their rights and obligations under local laws, especially concerning the assignment of the franchise.