What is the minimum notice period required to terminate the Holdover Period for a Caring Transitions franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee does not sign a Successor Agreement before the Expiration Date but continues to operate the Franchised Business (or a competitive business) or to otherwise accept the benefits of this Agreement after the Expiration Date, then at Franchisor's option, this Agreement may be treated either as: (i) expired as of the Expiration Date, with Franchisee thereafter operating without a license to do so and in violation of Franchisor's rights; or (ii) continued on a monthto-month basis (the "Holdover Period") until either party provides the other party with at least one month's written notice of that party's intention to terminate the Holdover Period (if the laws of the jurisdiction in which the Franchised Business or Franchisee is located require a longer notice period, the one-month period will be deemed modified to be the shortest notice period required by the applicable laws of the jurisdiction).
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 continues to operate the business after the franchise agreement expires without signing a Successor Agreement, the agreement may enter a "Holdover Period" on a month-to-month basis.
During this Holdover Period, either Caring Transitions or the franchisee can terminate the arrangement by providing written notice. The minimum notice period required to terminate the Holdover Period is one month. However, if the laws in the franchisee's jurisdiction require a longer notice period, the one-month requirement will be adjusted to meet the shortest notice period mandated by those local laws.
This means that a franchisee operating under a Holdover Period has the flexibility to discontinue the franchise with one month's notice (unless local laws dictate otherwise), and Caring Transitions also retains the right to terminate the holdover arrangement with the same notice period. Franchisees should be aware of their local jurisdiction's laws regarding notice periods to ensure compliance.