How long does Caring Transitions have to exercise its right of first refusal to purchase a franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee or its owners shall at any time decide to sell, transfer or assign any right or interest under this agreement and/or the franchise granted pursuant hereto, Franchisee or its owners shall first obtain a bona fide, executed, written offer from a responsible and fully disclosed purchaser and shall submit an exact copy thereof to Franchisor.
For a period of thirty (30) days after the date of delivery of such offer to Franchisor, Franchisor shall have the right, exercisable by written notice to Franchisee or any of its owners, to purchase such rights or interests for the price and on the terms and conditions contained in such offer, provided that Franchisor may substitute equivalent cash for any form of payment proposed in such offer.
Any purchase by Franchisor must be completed within sixty (60) days after Franchisee's receipt of Franchisor's written notice of its intent to purchase.
If Franchisor does not exercise its right of first refusal, Franchisee or its owners may complete the sale of such interest to the bona fide purchaser, subject to Franchisor's approval of the purchaser as provided in Section 12.2 herein; provided, however, that if the sale to such purchaser is not completed within one hundred twenty (120) days after the delivery of the offer to Franchisor, Franchisor shall again have the right of first refusal herein provided.
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 a franchisee decides to sell their franchise, Caring Transitions has a right of first refusal. This means that before the franchisee can sell to another party, they must first offer the franchise to Caring Transitions on the same terms.
Specifically, Caring Transitions has thirty (30) days after receiving a copy of the written offer to decide whether to purchase the franchise. This gives Caring Transitions time to evaluate the offer and decide if they want to buy the franchise themselves. If Caring Transitions decides to purchase the franchise, the purchase must be completed within sixty (60) days after the franchisee receives Caring Transitions' written notice of intent to purchase.
If Caring Transitions does not exercise its right of first refusal, the franchisee is free to sell to the original buyer, subject to Caring Transitions' approval of the buyer. However, if the sale to that buyer isn't completed within one hundred twenty (120) days after the initial offer was delivered to Caring Transitions, the right of first refusal is reinstated, and the process must begin again.