Does the Washington Addendum modify the Franchise Agreement for a Caring Transitions franchise?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
s in the franchise agreement or related agreements. stating that the franchisor may exercise its discretion on the basis of its reasonable business judgment may be limited or superseded by RCW 19.100.180(1), which requires the parties to deal with each other in good faith.
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- Indemnification. Any provision in the franchise agreement or related agreements requiring the franchisee to indemnify, reimburse, defend, or hold harmless the franchisor or other parties is hereby modified such that the franchisee has no obligation to indemnify, reimburse, defend, or hold harmless the franchisor or any other indemnified party for losses or liabilities to the extent that they are caused by the indemnified party's negligence, willful misconduct, strict liability, or fraud.
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- Attorneys' Fees.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
Yes, the 2025 Caring Transitions Franchise Disclosure Document indicates that a Washington-specific addendum modifies the franchise agreement. Specifically, Item 22 mentions "Exhibit P State-Specific Additional Disclosures and Riders described in Item 5." This suggests that Exhibit P contains modifications or additional disclosures that are specific to certain states, including Washington.
For a prospective Caring Transitions franchisee in Washington, this means the standard franchise agreement is not the entire picture. They must carefully review Exhibit P to understand the specific changes or additions applicable to their franchise due to Washington state law. These modifications could cover a range of topics, such as indemnification, attorneys' fees, or other legal considerations specific to franchising in Washington.
The FDD excerpt highlights two specific modifications within the Washington addendum. First, any clause requiring the franchisee to indemnify Caring Transitions is altered to remove the franchisee's obligation to cover losses caused by Caring Transitions's own negligence, misconduct, or fraud. Second, if the franchise agreement requires the franchisee to reimburse Caring Transitions for legal costs, that provision is modified in an unspecified way. A prospective franchisee should carefully review the full text of Exhibit P to understand the exact nature of these modifications and their implications.
It is common practice for franchise agreements to be modified by state-specific addenda to comply with local laws and regulations. Franchisees should pay close attention to these addenda as they can significantly impact their rights and obligations under the franchise agreement. In the case of Caring Transitions, understanding the Washington addendum is crucial for any franchisee operating in that state.