Under what circumstances is a Caring Transitions franchisee prohibited from exercising the Right of First Refusal?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
l automatically terminate at the end of the fifth business day and Franchisor will have the right to offer and sell a Franchise anywhere in the Territory to the bona fide prospective franchisee or to any other party, without your consent and without any further notice, obligation or liability to you. If Franchisor does not receive the balance of the franchise fee within sixteen days after You received the then current Franchise Disclosure Document (but in no event will you have less than five business days after You receive the Notice to pay the balance), then your Right of First Refusal will automatically terminate at the end of the sixteenth day and Franchisor will have the right to: offer or sell another Franchise anywhere in the Territory to the bona fide prospective franchisee or to any other party, without your consent and without any further notice, obligation or liability to You.
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- Sale of Territory to Third Party.
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, a franchisee's Right of First Refusal can be restricted under specific circumstances. If Caring Transitions does not receive the balance of the franchise fee within sixteen days after the franchisee receives the Franchise Disclosure Document, the Right of First Refusal automatically terminates. This timeline, however, ensures the franchisee has at least five business days after receiving a notice to pay the balance.
Additionally, a Caring Transitions franchisee cannot exercise the Right of First Refusal if an Event Allowing Termination, as defined in Section 13.1 of the Franchise Agreement, has occurred and not been cured within the time period specified in Section 13.2 of the Franchise Agreement.
Finally, the Right of First Refusal for a Caring Transitions franchisee will automatically expire one year after the effective date of the agreement. This means that after this one-year period, the franchisee no longer has the right to be offered the first opportunity to purchase additional franchises in their territory.