When does the Caring Transitions Right of First Refusal automatically expire?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
This Right of First Refusal will automatically expire one (1) year after the Effective Date of this agreement.
If Franchisor does not receive your signed Intent to Exercise Right of First Refusal and the Deposit within seven days after You received the Notice, then your Right of First Refusal will automatically terminate at the end of the fifth business day and Franchisor will have the right to offer and sell a Franchise anywhere in the Territory to the bona fide prospective franchisee or to any other party, without your consent and without any further notice, obligation or liability to you.
If Franchisor does not receive the balance of the franchise fee within sixteen days after You received the then current Franchise Disclosure Document (but in no event will you have less than five business days after You receive the Notice to pay the balance), then your Right of First Refusal will automatically terminate at the end of the sixteenth day and Franchisor will have the right to: offer or sell another Franchise anywhere in the Territory to the bona fide prospective franchisee or to any other party, without your consent and without any further notice, obligation or liability to You.
You cannot exercise the Right of First Refusal at any time after the occurrence of an Event Allowing Termination, as that term is defined in Section 13.1 of your Franchise Agreement, unless the Event Allowing Termination was cured within the applicable time period, if any, provided in Section 13.2 of your Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, there are multiple conditions under which the Right of First Refusal can expire. The right automatically expires one year after the effective date of the agreement.
Additionally, the Right of First Refusal will terminate if the franchisee fails to act within certain timeframes. Specifically, if Caring Transitions does not receive the franchisee's signed Intent to Exercise Right of First Refusal within seven days of receiving notice, the Right of First Refusal terminates at the end of the fifth business day. Similarly, if Caring Transitions does not receive the balance of the franchise fee within sixteen days after the franchisee receives the Franchise Disclosure Document, the Right of First Refusal terminates at the end of the sixteenth day.
Finally, the Right of First Refusal cannot be exercised if an Event Allowing Termination has occurred as defined in the Franchise Agreement, unless the event was cured within the time period provided in the Franchise Agreement.