Under what condition will Caring Transitions not unreasonably withhold consent to a transfer?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided in Article 12, Franchisor shall not unreasonably withhold its consent to a transfer of any interest in Franchisee, in this agreement, or in the franchise granted hereunder; provided, however, that prior to the transfer, Franchisor may, in its sole discretion, require that:
- (1) All of Franchisee's accrued monetary obligations to Franchisor or any of its affiliates and all other outstanding obligations related to the franchised business shall have been satisfied.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 41–49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, Caring Transitions will not unreasonably withhold consent to a transfer of any interest in the franchise, the agreement, or in the franchise granted, except as provided in Article 12. However, prior to the transfer, Caring Transitions may require certain conditions to be met at its sole discretion.
These conditions include ensuring that all of the franchisee's accrued monetary obligations to Caring Transitions or its affiliates, along with any other outstanding obligations related to the franchised business, are fully satisfied. This protects Caring Transitions' financial interests and ensures that the franchisee is in good standing before transferring the business.
It is important to note that Caring Transitions is not obligated to consent to any transfer to a person that owns, operates, franchises, licenses, develops, consults with, manages, is involved in or employed by, or controls a competitive business. If Caring Transitions refuses to consent to a transfer under this paragraph, the sole remedy of Franchisee will be to seek a declaratory judgment in a court of competent jurisdiction to determine whether the proposed transferee is a person that owns, operates, franchises, licenses, develops, consults with, manages, is involved in or employed by, or controls a competitive business.