What is the Caring Transitions policy on dispute resolution?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| u. Dispute resolution by arbitration or mediation | 16.2 | Except for certain claims, all disputes must be arbitrated in Hamilton County, Ohio (subject to state law); claims may not be consolidated with claims of other franchisees; parties waive right to jury trial and punitive damages; except for certain claims, all claims must be brought within 1 year, subject to state law. |
| v. Choice of forum | 18.4 | Except for claims arising under a franchise law of the state where the franchised business is located, all litigation or arbitration must be in Hamilton County, Ohio, subject to state law. |
| w. Choice of law | 18.3 Section in Franchise | Except for claims arising under a franchise law of the state where the franchised business is located, Ohio law applies, subject to state law. |
| Provision | Agreement | Summary |
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, dispute resolution between Caring Transitions and its franchisees is addressed in Section 16.2 of the franchise agreement. Except for certain claims, all disputes must be resolved through arbitration in Hamilton County, Ohio, and are subject to state law. This means a franchisee may be required to travel to Ohio to resolve disputes. Franchisees are not allowed to consolidate their claims with those of other franchisees, and they waive their right to a jury trial and punitive damages.
The FDD states that all claims, except for certain ones, must be brought within one year, although this is also subject to state law. This one-year limitation could significantly restrict a franchisee's ability to pursue legal action if they discover an issue after this period.
Furthermore, Section 18.4 of the franchise agreement specifies that all litigation or arbitration, except for claims arising under a franchise law of the state where the franchised business is located, must occur in Hamilton County, Ohio, and are subject to state law. Section 18.3 indicates that Ohio law applies to these disputes, except for claims arising under a franchise law of the state where the franchised business is located, which are subject to state law. This means that franchisees may have to navigate Ohio's legal system, potentially incurring additional costs for legal representation familiar with Ohio law.
These provisions regarding dispute resolution, choice of forum, and choice of law are common in franchise agreements. Prospective franchisees should carefully consider these factors and seek legal counsel to understand the implications of these clauses before investing in a Caring Transitions franchise.