Must the transferee franchisee assume all of the Caring Transitions franchisee's obligations under the agreement?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
(4) The transferee franchisee shall enter into a written assumption, in a form satisfactory to Franchisor, assuming and agreeing to discharge all of Franchisee's obligations under this agreement prior to and after the date of the assumption.
(5) The transferee franchisee authorizes Franchisor to conduct such background investigations as Franchisor deems necessary (which may include credit report/score, criminal record, and behavioral assessment), and demonstrates to Franchisor's satisfaction that it meets Franchisor's educational, managerial and business standards; possesses a good moral character, business reputation, and credit rating; has the aptitude and ability to conduct the franchised business (as may be evidenced by prior related business experience
or otherwise), and has adequate financial resources and capital to operate the business.
(6) The transferee franchisee shall execute Franchisor's then current form of Franchise Agreement and such other ancillary agreements as Franchisor may require.
(7) At the transferee franchisee's expense, and upon such other terms and conditions as Franchisor may reasonably require, the transferee franchisee or its manager shall complete the initial training program then in effect for franchisees, and Franchisee shall continue to provide operational and consulting support to transferee franchisee for a reasonable period of time after completion of the initial training program.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a transferee franchisee must assume all obligations of the original franchisee under the franchise agreement. Prior to the transfer, the transferee franchisee must enter into a written agreement, in a form satisfactory to Caring Transitions, to assume and agree to discharge all of the original franchisee's obligations. This assumption covers obligations both before and after the date of the assumption.
In addition to assuming the obligations, the transferee franchisee must also meet several other requirements. Caring Transitions must be satisfied that the transferee meets the brand's educational, managerial, and business standards. This includes demonstrating a good moral character, business reputation, and credit rating, as well as possessing the aptitude and ability to conduct the franchised business. Caring Transitions is authorized to conduct background investigations, including credit reports, criminal record checks, and behavioral assessments, to ensure these standards are met.
The transferee franchisee is also required to execute Caring Transitions' then-current form of Franchise Agreement and any other ancillary agreements that Caring Transitions may require. Furthermore, at the transferee franchisee's expense, they or their manager must complete the initial training program in effect for franchisees. The original franchisee is expected to provide operational and consulting support to the transferee for a reasonable period after the training program is completed.
These stipulations ensure that any new franchisee taking over an existing Caring Transitions franchise is fully vetted, trained, and committed to upholding the standards and obligations of the franchise agreement. This protects the integrity of the Caring Transitions brand and the interests of other franchisees within the system.