factual

Does the Caring Transitions non-compete agreement survive the expiration, termination, or transfer of the franchise agreement?

Caring_Transitions Franchise · 2025 FDD

Answer from 2025 FDD Document

The covenants in this Section 15.3 will survive the expiration, termination, or transfer of this Agreement.

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)

What This Means (2025 FDD)

According to Caring Transitions' 2025 Franchise Disclosure Document, the non-compete covenants outlined in Section 15.3 of the franchise agreement will indeed survive the expiration, termination, or transfer of the agreement. This means that even after the franchise relationship ends, the franchisee is still bound by certain restrictions.

Specifically, Section 15.3 restricts the franchisee from engaging in competitive business activities for a period of two years after the end of the franchise agreement. This includes owning, operating, or having any interest in a business that offers moving management, estate liquidation, or household liquidation services within 15 miles of the franchisee's territory or any other Caring Transitions franchisee's territory. The franchisee is also prohibited from soliciting referrals for these services from Shared Referral Sources within the same geographic boundaries.

Furthermore, the FDD states that these non-compete clauses are severable and enforceable to the fullest extent allowed by law. This indicates that Caring Transitions intends to vigorously protect its business interests and enforce these restrictions. Prospective franchisees should carefully consider the implications of these post-termination covenants, as they could significantly limit their business opportunities after leaving the Caring Transitions system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.