Who is included in the definition of 'Franchisee' in the Caring Transitions franchise agreement?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS FRANCHISE AGREEMENT is between C.T. FRANCHISING SYSTEMS, INC., an Ohio corporation ("Franchisor"), and the individual(s) or entity identified on Exhibit A attached hereto and by this reference incorporated herein (collectively and individually referred to as "Franchisee");
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the term "Franchisee" refers to the individual(s) or entity identified on Exhibit A of the franchise agreement. This means that the franchisee can be a single person, multiple individuals, or a business entity.
The agreement specifies that if the franchisee is not a limited liability business entity when initially signing the agreement, they must transfer their interest in the franchised business to such an entity within 90 days. In this case, the individuals who originally signed the agreement must maintain a controlling interest in the limited liability entity, and one of them must act as the principal executive or manager.
This requirement ensures that Caring Transitions maintains a consistent point of contact and that the individuals initially vetted as franchisees remain involved in the business's operation. It also provides a degree of legal protection through the limited liability structure, which is a common practice in franchising.