What is the Caring Transitions policy on assignment of the franchise agreement?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| C.T. FRANCHISING SYSTEMS, INC. ("we," "us," "our," or "Franchisor") and the undersigned franchise, ("you," "your," or "Franchisee"), currently are parties to a certain franchise agreement dated (the "Franchise Agreement") for the operation of a Caring Transitions franchised business designated Caring Transitions franchise no You have asked us to take the following action nor to agree to the following request: [insert as appropriate for renewal or transfer situation] |
|---|
| We have the right under the Franchise Agreement to obtain a general release from you (and, if |
| applicable, your owners) as a condition of taking this action or agreeing to this request. Therefore, |
| we are willing to take the action or agree to the request specified above if you (and if applicable, |
| your owners) give us the release and covenant not to sue provided below in this document. You |
| (and, if applicable, your owners) are willing to give us the release and covenant not to sue |
| provided below as partial consideration for our willingness to take the action nor agree to the |
| request described above. |
| Consistent with the previous introduction, you, on your own behalf and on behalf of your |
| successors, heirs, executors, administrators, personal representatives, agents, assigns, partners, |
| shareholders, members, directors, officers, principals, employees, and affiliated entities |
| (collectively, the "Releasing Parties"), hereby forever release and discharge us and our current |
| and former officers, directors, shareholders, principals, employees, agents, representatives, |
| affiliated entities, successors, and assigns (collectively, the "Franchisor Parties") from any and all |
| claims, damages (known and unknown), demands, causes of action, suits, duties, liabilities, and |
| agreements of any nature and kind (collectively, "Claims") that you and any of the other Releasing |
| Parties now have, ever had, or, but for this document, hereafter would or could have against any |
| of the Franchisor Parties (1) arising out of or related to the Franchisor Parties' performance of |
| their obligations under the Franchise Agreement before the date of your signature below or (2) |
| otherwise arising from or related to your and the other Releasing Parties' relationship, from the |
| beginning of time to the date of your signature below, with any of the Franchisor Parties. You, on |
| your own behalf and on behalf of the other Releasing Parties, further covenant not to sue any of |
| the Franchisor Parties on any of the Claims released by this paragraph and represent that you |
| have not assigned any of the Claims released by this paragraph to any individual or entity that is |
| not bound by this paragraph. |
| We also are entitled to a release and covenant not to sue from your owners. By his, her, |
| or their separate signature below, your transferring owners likewise grant to us the release and |
| covenant not to sue provided above. |
| *********************************** |
| Notwithstanding the above, nothing contained herein shall act as a release, estoppel or |
| waiver of any claim or liability arising under the Maryland Franchise Registration and Disclosure |
| Law. |
What This Means (2025 FDD)
Based on the 2025 Caring Transitions Franchise Disclosure Document, the document outlines a process related to franchise agreement modifications or requests, such as a transfer. C.T. Franchising Systems, Inc. has the right to obtain a general release from the franchisee (and their owners, if applicable) as a condition of agreeing to a franchisee's request. This indicates that if a franchisee wants to assign or transfer their franchise agreement, Caring Transitions can require a release from any potential liabilities as part of the approval process.
The release involves the franchisee and their associated parties (successors, heirs, etc.) discharging Caring Transitions and its associated parties from any claims, damages, or liabilities related to the franchise agreement or the relationship between the franchisee and Caring Transitions up to the date of signing the release. The franchisee also agrees not to sue Caring Transitions on any of the released claims and confirms that they have not assigned these claims to any entity not bound by this release. This suggests that Caring Transitions aims to protect itself from potential legal issues when considering a transfer or other modifications to the franchise agreement.
Furthermore, Caring Transitions is entitled to a similar release and covenant not to sue from the franchisee's owners, reinforcing the comprehensive nature of the release required. However, the document specifies that nothing in the release acts as a waiver of any claim or liability arising under the Maryland Franchise Registration and Disclosure Law. This clause ensures compliance with specific state regulations, indicating that the release's scope is limited by applicable laws. Prospective franchisees should carefully review these conditions and seek legal counsel to understand the full implications of such a release before agreeing to it.