What statement must be included on each ownership certificate of a Caring Transitions franchisee that is a limited liability business entity?

According to Caring Transitions' 2025 Franchise Disclosure Document, if a franchisee is a limited liability business entity, each ownership certificate must include a specific legend. This legend must state that the issuance and transfer of any ownership interest in the franchisee company are subject to the terms and conditions outlined in the franchise agreement. This requirement ensures that all owners are aware of and bound by the franchise agreement's provisions, particularly those related to transferring ownership.

For a prospective Caring Transitions franchisee, this means that if they choose to operate their franchise through a limited liability entity, they must ensure that all ownership certificates issued by that entity contain the prescribed statement. This is not merely a formality; it's a legally binding notification to any potential buyer or transferee of ownership interests. It prevents the transfer of ownership to someone who is unaware of or unwilling to comply with the franchise agreement.

If the franchisee is a limited liability company without formal ownership certificates, they must provide Caring Transitions with evidence that their partnership or operating agreement contains provisions acceptable to Caring Transitions that prohibit the transfer of any ownership interest in Franchisee other than in compliance with the terms and conditions of this agreement. This ensures that the transfer of ownership is controlled and compliant with the franchise agreement, regardless of the business structure.