What responsibility does a Caring Transitions franchisee have for ensuring that its employees, agents, and professional advisors comply with the confidentiality requirements?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall divulge confidential information only to such of its employees, agents, or professional advisors as must have access to it in order to operate the franchised business as described herein, or with Franchisor's prior written consent. In connection therewith, Franchisee shall be fully responsible for ensuring that its employees, agents, and professional advisors comply with this section.
- 10.2 Remedies. Franchisee acknowledges that any failure to comply with Section 10.1 will cause Franchisor irreparable injury, and Franchisee consents to the issuance of, and agrees to pay all court
costs and reasonable attorneys' fees incurred by Franchisor in obtaining, specific performance of, or any injunction against a violation of, the requirements of Section 10.1.
- 10.3 Preservation of Confidentiality.
Franchisee shall require Franchisee's Principals, directors, officers, and management employees, at the time of the commencement of their association with Franchisee, to execute confidentiality agreements, in a form approved by Franchisor, requiring that all confidential information that may be acquired by or imparted to such persons in connection with their association with Franchisee be held in strict confidence and used solely for the benefit of Franchisee and Franchisor, at all times during their association with Franchisee and thereafter.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, franchisees have a significant responsibility to ensure that their employees, agents, and professional advisors comply with confidentiality requirements. Franchisees must only share confidential information with those employees, agents, or professional advisors who need it to operate the franchised business, or with Caring Transitions' prior written consent.
To ensure compliance, Caring Transitions franchisees are held fully responsible for their employees', agents', and professional advisors' adherence to the confidentiality terms outlined in the agreement. This means that any breach of confidentiality by these parties is the franchisee's responsibility.
Furthermore, Caring Transitions requires franchisees to have their Principals, directors, officers, and management employees sign confidentiality agreements, in a form approved by Caring Transitions, at the commencement of their association. These agreements must ensure that all confidential information is held in strict confidence and used solely for the benefit of the franchisee and Caring Transitions, both during and after their association with the franchisee. Failure to comply with these confidentiality requirements can result in irreparable injury to Caring Transitions, and the franchisee may be liable for court costs and attorneys' fees incurred by Caring Transitions in enforcing these provisions.