Does Caring Transitions have the right to approve all transfers of the franchise by the franchisee?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
in the agreements attached to this disclosure 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 |
| h. "Cause" defined - defaults which cannot be cured | 13.1, 13.2 | Non-curable defaults: failure to begin training within 90 days after franchise agreement signed, failure to complete training to our satisfaction, failure to open franchise within 90 days after you complete training, failure to maintain franchised business in continuous operation, certain assignments, abandonment, failure to comply with applicable law, unapproved transfers, misrepresentation, knowingly submitting false report or maintaining false books or records, knowing understatement of Gross Receipts, 3rd breach of any term(s), breach of §15.2, bankruptcy1 , seizure of or execution against your franchise, unsatisfied or unappealed judgment against franchisee, certain criminal misconduct, conduct which reflects negatively on the s |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 34–36)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, Caring Transitions has the right to approve all franchise transfers initiated by the franchisee. However, Caring Transitions may not unreasonably withhold its consent.
For a prospective Caring Transitions franchisee, this means that if they decide to sell their franchise, they cannot simply transfer it to anyone. They must obtain approval from Caring Transitions. This provision protects the integrity of the Caring Transitions brand and ensures that any new franchisee meets the franchisor's standards.
The FDD outlines specific conditions that must be met for Caring Transitions to approve a transfer. These conditions include the franchisee fulfilling all financial obligations and paying any applicable transfer fees. Additionally, the new franchisee must meet Caring Transitions's qualification standards, sign the current franchise agreement, and complete the required training program. The original franchisee may also be required to release any claims against Caring Transitions, if permitted by state law.
Caring Transitions also retains the right of first refusal, meaning they can match any offer made for the franchisee's business and acquire the franchise themselves. Furthermore, the FDD specifies that an unapproved transfer constitutes a non-curable default, which could lead to termination of the franchise agreement. However, in the event of the franchisee's death or disability, their heirs may inherit the franchise, provided they meet the necessary qualifications and transfer requirements.