How long does a Caring Transitions franchisee have to satisfy a final judgment before the franchised business can be seized?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- (n) The franchised business or the Premises are seized, taken over or foreclosed by a government official in the exercise of his duties, or seized, taken over or foreclosed by a creditor, lien holder or lessor, provided that a final judgment against the Franchisee remains unsatisfied for thirty days (unless a supersedeas or other appeal bond has been filed); or a levy of execution has been made upon the license granted by this Agreement or upon any property used in the franchised business that is not discharged within five days of such levy;
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee has 30 days to satisfy a final judgment against them before the franchised business can be seized. This is under the condition that a government official, creditor, lien holder, or lessor seizes, takes over, or forecloses the business or premises. However, if the franchisee files a supersedeas or other appeal bond, this 30-day period may be superseded.
Additionally, if a levy of execution is made upon the license granted by the Franchise Agreement or upon any property used in the franchised business, the franchisee has only five days to discharge the levy to avoid seizure. This is a much shorter timeframe than the 30 days allowed for satisfying a final judgment.
These stipulations highlight the importance of franchisees maintaining good financial standing and promptly addressing any legal judgments or levies against their business. Failure to do so within the specified timeframes could result in the loss of the franchise.