What are the two conditions that a Caring Transitions franchisee must meet to exercise their Right of First Refusal?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
- Exercise of Right of First Refusal. If a bona fide prospective franchisee selects a franchise territory that includes all or any part of the Territory described in Section 3 above, Franchisor will notify you by email, ordinary mail, or overnight delivery (the "Notice"). You can exercise this Right of First Refusal only as follows:
(a) Franchisor must receive your signed Intent to Exercise Right of First Refusal (a copy of which is attached to this agreement) by 17:00 hours Eastern Time on the seventh day after you receive the Notice;
and
(b) Franchisor must receive the balance of the then current franchise fee for the Territory size described in Section 3 above (determined in accordance with Franchisor's then current pricing policy less the amount of the Right of First Refusal Fee already paid) and a signed copy of our then-current franchise agreement and all ancillary agreements by the later of either (i) 17:00 Eastern Time on the seventh day after you receive your Notice or, (ii) if you have not previously received a copy of our then-current franchise disclosure document, 17:00 hours Eastern Time on the sixteenth day after you receive a copy of our then-current franchise disclosure document.
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee can exercise their Right of First Refusal if a prospective franchisee selects a territory that includes part or all of the franchisee's territory. To exercise this right, the Caring Transitions franchisee must meet two specific conditions.
First, Caring Transitions must receive the franchisee's signed Intent to Exercise Right of First Refusal by 17:00 hours Eastern Time on the seventh day after the franchisee receives notice from Caring Transitions. This indicates the franchisee's formal intention to take advantage of their right.
Second, Caring Transitions must receive the balance of the then-current franchise fee for the territory size, determined by Caring Transitions' current pricing policy, minus the amount of the Right of First Refusal Fee already paid. Additionally, Caring Transitions must receive a signed copy of the then-current franchise agreement and all ancillary agreements. This must be completed by the later of either 17:00 Eastern Time on the seventh day after receiving the notice or, if the franchisee has not previously received a copy of the current franchise disclosure document, by 17:00 hours Eastern Time on the sixteenth day after receiving the FDD. Failure to meet these conditions will result in the termination of the Right of First Refusal.