Must the transferee franchisee execute the Caring Transitions then-current form of Franchise Agreement?

According to Caring Transitions' 2025 Franchise Disclosure Document, a transferee franchisee is required to execute the franchisor's then-current form of the Franchise Agreement. This means that if a franchisee sells their Caring Transitions franchise to a new owner, that new owner must sign the franchise agreement that is in effect at the time of the transfer, which may be different from the agreement the original franchisee signed.

This requirement ensures that all Caring Transitions franchisees are operating under the same, up-to-date terms and conditions. It allows Caring Transitions to implement changes to the franchise system, such as updated operating procedures, new fees, or revised brand standards, and apply them consistently across the network.

For a prospective franchisee looking to buy an existing Caring Transitions franchise, this condition is important to consider. The terms of the current franchise agreement may be more or less favorable than those of the original agreement. The prospective franchisee should carefully review the current franchise agreement and understand its obligations before completing the purchase. Additionally, the transferee franchisee must also 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.

Furthermore, the transferee franchisee must authorize Caring Transitions to conduct background investigations, which may include credit report/score, criminal record, and behavioral assessment. The transferee must also demonstrate that they meet Caring Transitions' 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, and has adequate financial resources and capital to operate the business.