How much written notice is required to be given to Caring Transitions before an insurance policy can be cancelled?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
ployee Dishonesty & Client Theft Insurance with a minimum limit of $25,000.
Franchisee shall maintain such other insurance as may be required by statute or rule of the state or locality in which the franchised business is located and operated and by any lease to which Franchisee is a party. All policies of insurance that Franchisee is required to maintain hereunder (except for the Workers' Compensation Insurance) shall have a deductible of not more than $1,000 and shall name Franchisor as an additional insured. All insurance shall be placed with an insurance carrier or carriers approved in writing by Franchisor and shall not be s
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees must provide Caring Transitions with 30 days' written notice before cancelling any required insurance policies. This requirement does not apply to Workers' Compensation Insurance.
This stipulation ensures that Caring Transitions is aware of any potential lapse in coverage, allowing them to take necessary steps to protect their interests as an additional insured party. The franchisee is responsible for maintaining continuous and adequate insurance coverage throughout the term of the franchise agreement. Failing to provide the required notice or maintain adequate insurance could result in Caring Transitions obtaining the necessary coverage themselves and charging the franchisee for the costs, including interest.
It is common practice in franchising for franchisors to require franchisees to maintain certain insurance coverages and to be named as an additional insured on those policies. This protects the franchisor from potential liabilities arising from the franchisee's operations. The 30-day notice period allows the franchisor time to ensure that coverage remains in place, either by requiring the franchisee to reinstate the policy or by obtaining alternative coverage themselves. Prospective franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and understand the potential consequences of failing to comply.