What is the purpose of the New York Addendum to the Caring Transitions Franchise Agreement?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
anchise Disclosure Document at the earlier of the first personal meeting, ten (10) business days before the execution of the franchise or other agreement, or the payment of any consideration that relates to the franchise relationship.
NEW YORK ADDENDUM TO FRANCHISE AGREEMENT
The following terms amend the Franchise Agreement to which this addendum is attached, for the purpose of complying with the New York General Business Law and the New York State Franchise Regulations, and are hereby incorporated into the Franchise Agreement by this reference. The terms in this addendum control in the event of conflicting terms in the Franchise Agreement.
- Section 2.2(d) of the Franchise Agreement shall be amended by adding the following language:
"Provided, however, that all rights arising in Franchisee's favor from the provisions of Article 33 of the General Business Laws of the State of New York ("GBL") and the regulations issued thereunder shall remain in force; it being the intent of this proviso that the non-waiver provisions of GBL, sections 687.4 and 687.5 be satisfied."
- Franchisor and Franchisee hereby ratify and affirm the Franchise Agreement in all other respects.
The parties are signing this addendum concurrently with the Franchise Agreement to which it is attached.
| FRANCHISEE(S): | FRANCHISOR: |
|---|---|
| C.T. FRANCHISING SYSTEMS, INC. | |
| Signature | By: Its: |
| Signature |
NORTH DAKOTA
The following additional disclosures are required by the North Dakota Franchise Investment Law:
ITEM 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
Non-competition covenants such as the one mentioned in Item 17(r) and in Section 15.3 are generally considered unenforceable in the State of North Dakota.
The release required as a condition of renewal and/or assignment/transfer, as stated in Item 17 (c) and Section 2.2(d), will not apply to any liability arising under the North Dakota Franchise Investment Law.
Any provision of the franchise agreement restricting jurisdiction or venue to a forum outside the State of North Dakota or requiring the application of the laws of a state other than North Dakota is void.
Any provision of the franchise agreement requiring you to waive the right to a trial by jury is void.
Any provision of the franchise agreement requiring you to waive exemplary or punitive damages is void.
Any provision of the franchise agreement requiring you to consent to a statute of limitations that is shorter than the applicable North Dakota statute of limitations is void.
Any provision of the franchise agreement requiring you to consent to termination or liquidated damages, including Section 13.5 and 15.3(c), is void.
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the New York Addendum to the Franchise Agreement is designed to ensure compliance with New York General Business Law and New York State Franchise Regulations. This addendum is incorporated into the Franchise Agreement and its terms will take precedence if there are any conflicting terms within the original agreement. This ensures that franchisees operating in New York receive the protections and rights mandated by New York law.
Specifically, the addendum addresses the non-waiver provisions of GBL sections 687.4 and 687.5, ensuring these rights remain in force for the franchisee. It amends Section 2.2(d) of the Franchise Agreement to explicitly state that all rights arising in the franchisee's favor under Article 33 of the General Business Laws of the State of New York will remain in effect.
Furthermore, the addendum reinforces that no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under applicable state franchise law, including fraud, or disclaim reliance on statements made by Caring Transitions or its representatives. This provision supersedes any conflicting terms in other documents related to the franchise agreement. The addendum also confirms that any sale must comply with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which dictates the timeframe in which the Franchise Disclosure Document must be provided to the prospective franchisee before a sale can be finalized. New York law mandates that Caring Transitions provide the Franchise Disclosure Document at the earlier of the first personal meeting or ten business days before the execution of the franchise agreement or any related payment.