What is the 'Notice' referring to in the context of the Caring Transitions Right of First Refusal?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- Exercise of Right of First Refusal. If a bona fide prospective franchisee selects a franchise territory that includes all or any part of the Territory described in Section 3 above, Franchisor will notify you by email, ordinary mail, or overnight delivery (the "Notice"). You can exercise this Right of First Refusal only as follows:
(a) Franchisor must receive your signed Intent to Exercise Right of First Refusal (a copy of which is attached to this agreement) by 17:00 hours Eastern Time on the seventh day after you receive the Notice;
and
(b) Franchisor must receive the balance of the then current franchise fee for the Territory size described in Section 3 above (determined in accordance with Franchisor's then current pricing policy less the amount of the Right of First Refusal Fee already paid) and a signed copy of our then-current franchise agreement and all ancillary agreements by the later of either (i) 17:00 Eastern Time on the seventh day after you receive your Notice or, (ii) if you have not previously received a copy of our then-current franchise disclosure document, 17:00 hours Eastern Time on the sixteenth day after you receive a copy of our then-current franchise disclosure document.
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the "Notice" refers to the formal notification a franchisee receives when a prospective franchisee expresses interest in a territory that overlaps with the franchisee's existing territory. This triggers the franchisee's Right of First Refusal, giving them the first opportunity to secure the new territory.
The FDD specifies that Caring Transitions will send this notice via email, ordinary mail, or overnight delivery. Upon receiving the Notice, the franchisee has a limited time to respond. Specifically, they must submit a signed "Intent to Exercise Right of First Refusal" within seven days. They also need to pay the remaining franchise fee balance, less any Right of First Refusal fee already paid, and submit a signed franchise agreement. The deadline for these actions is either 17:00 hours Eastern Time on the seventh day after receiving the Notice, or if they haven't received the current franchise disclosure document, 17:00 hours Eastern Time on the sixteenth day after receiving that document.
If the franchisee fails to meet these deadlines, their Right of First Refusal is automatically terminated. Caring Transitions then has the right to offer the franchise to the prospective franchisee or any other party without further obligation to the original franchisee. This underscores the importance of acting quickly and decisively upon receiving the Notice to avoid losing the opportunity to expand their territory.