In what state was the Caring Transitions Right of First Refusal agreement accepted by the Franchisor?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement was accepted by Franchisor in Cincinnati, Ohio, and for all purposes will be governed by and construed in accordance with the laws of the State of Ohio.
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the Right of First Refusal agreement was accepted by Caring Transitions in Cincinnati, Ohio. This means that the legal acceptance of the agreement, from Caring Transitions' perspective, occurred within the state of Ohio. Consequently, the agreement is governed by and construed in accordance with the laws of Ohio.
This has several implications for a prospective Caring Transitions franchisee. Firstly, any disputes related to the Right of First Refusal agreement will be subject to Ohio law, regardless of where the franchisee's territory is located. Secondly, any lawsuits arising from the agreement must be litigated in courts within Hamilton County, Ohio, subject to Caring Transitions's election. This could mean additional travel and legal expenses for a franchisee located outside of Ohio if a dispute arises.
The FDD specifies that franchisees consent to the jurisdiction of Ohio state and federal courts and waive any defense of lack of personal jurisdiction in lawsuits filed in those courts. Franchisees also consent to being served with legal process outside of Ohio. This underscores the importance of understanding Ohio law and potentially consulting with an attorney familiar with Ohio legal practices before signing the Right of First Refusal agreement.
While the FDD specifies that Ohio law governs the Right of First Refusal agreement, it also includes arbitration provisions in Article 16 of the Franchise Agreement for settling claims or disputes. This means that while Ohio law applies, the initial dispute resolution process may involve arbitration before resorting to litigation in Ohio courts. Franchisees should carefully review Article 16 to understand the arbitration process and its implications.