How long does a right of first refusal last for a Caring Transitions franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
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Your franchise agreement does not give you any option, right of first refusal, or similar right to acquire additional franchises, but you may purchase a right of first refusal to purchase an additional franchise territory. The price for a right of first refusal is $3,000, which would be credited toward the initial franchise fee if you exercise the right of first refusal. A right of first refusal will give you the right to purchase a specific territory first if another prospective purchaser shows an interest in purchasing the territory within 1 year after you purchase the right of first refusal. You would have 7 calendar days after receipt of notice to exercise the right. Caring Transitions must receive the entire balance of the then current initial franchise fee for the right of first refusal territory by the seventh day after you receive the notice. A right of first refusal lasts for 1 year. The right of first refusal agreement is attached to this disclosure document as Exhibi
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, franchisees do not automatically receive a right of first refusal to acquire additional franchises. However, a franchisee can purchase a right of first refusal for $3,000, which is then credited towards the initial franchise fee if the franchisee exercises that right.
The right of first refusal grants the franchisee the first opportunity to purchase a specific territory if another potential buyer expresses interest. This right is valid for one year from the date of purchase. If Caring Transitions receives an offer from another party to purchase the territory, the franchisee holding the right of first refusal has seven calendar days from the date of notification to exercise their right and pay the full initial franchise fee.
This arrangement allows existing Caring Transitions franchisees to expand their business by securing additional territories. However, it's crucial to be prepared to act quickly and have the necessary funds readily available to pay the initial franchise fee within the seven-day window. The right of first refusal agreement is included as Exhibit K in the Franchise Disclosure Document, which prospective franchisees should review carefully.