In New York, what is the meaning of 'nolo contendere' in the context of the Caring Transitions FDD?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
NCHISE DISCLOSURE DOCUMENT. HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.**
- The following is to be added at the end of Item 3:
With the exception of what is stated above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, Item 22 clarifies the implications of pleading 'nolo contendere' within the context of offering franchises in New York. Specifically, it states that the franchisor, its predecessors, individuals identified in Item 2, or affiliates offering franchises under the Caring Transitions trademark must disclose certain legal history.
Specifically, Caring Transitions must disclose if any of the aforementioned parties have been convicted of a felony or pleaded nolo contendere to a felony charge. Furthermore, disclosure is required if, within the 10 years before the franchise application, they have been convicted of or pleaded nolo contendere to a misdemeanor charge. This also extends to civil actions alleging violations of franchise, antifraud, or securities laws; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices.
In essence, a 'nolo contendere' plea, which means 'no contest' in Latin, is treated similarly to a conviction in the context of franchise registration and disclosure in New York. This means that Caring Transitions must disclose such pleas, along with convictions and civil actions, to potential franchisees in New York, allowing them to make informed decisions.