Does Caring Transitions have the right to rely on the Designated Individual to have decision-making authority?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is other than an individual, prior to beginning the initial training program described in Section 7.1, Franchisee shall designate, subject to Franchisor's reasonable approval, an individual (the "Designated Individual") who shall be responsible for general oversight and management of the operations of the franchised business on behalf of Franchisee.
The Designated Individual must attend and successfully complete the initial training program and such other training programs as Franchisor may from time to time require during the term of this agreement.
Franchisee acknowledges and agrees that Franchisor shall have the right to rely upon the Designated Individual to have been given, by Franchisee, decision-making authority and responsibility regarding all aspects of the franchised business.
In the event that the person designated as the Designated Individual dies, becomes incapacitated, leaves Franchisee's employ, transfers his/her interest in Franchisee, or otherwise ceases to supervise the operations of the franchised business, Franchisee shall promptly designate a new Designated Individual, subject to Franchisor's reasonable approval.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, if the franchisee is not an individual, they must designate a Designated Individual who is responsible for the general oversight and management of the franchised business. This Designated Individual is subject to Caring Transitions' reasonable approval and must complete the initial training program, as well as any other required training programs.
The FDD states that Caring Transitions has the right to rely on the Designated Individual having decision-making authority and responsibility regarding all aspects of the franchised business. This means that Caring Transitions can assume that the Designated Individual has the power to make decisions on behalf of the franchisee entity.
If the Designated Individual dies, becomes incapacitated, leaves the franchisee's employment, transfers their interest, or otherwise ceases to supervise the business operations, the franchisee must promptly designate a new Designated Individual, again subject to Caring Transitions' approval. This ensures that there is always a point of contact with decision-making authority for Caring Transitions to interact with.