Does Caring Transitions have a right of first refusal to acquire a franchisee's business?

According to Caring Transitions's 2025 Franchise Disclosure Document, Caring Transitions does have a right of first refusal if a franchisee decides to sell their business. Specifically, Caring Transitions has the ability to match any offer that a franchisee receives from a third party who is interested in buying the franchise.

This right of first refusal means that if a franchisee finds a buyer and agrees to a sale price and terms, Caring Transitions has the option to step in and purchase the business on those exact same terms. The franchisee is obligated to give Caring Transitions the opportunity to buy the business before completing the sale to the third party. This is a fairly common provision in franchise agreements, as it allows the franchisor to maintain control over who enters the system and to ensure that the brand is represented by qualified and suitable owners.

For a prospective Caring Transitions franchisee, this means that while you have the right to sell your business, Caring Transitions has the first opportunity to buy it. This could potentially delay a sale, as you must wait for Caring Transitions to make a decision. It also means that Caring Transitions could prevent you from selling to a buyer of your choice if they decide to exercise their right of first refusal. Therefore, franchisees should consider this when planning their exit strategy and negotiating potential sale terms.