Can Care Plus Medical Ucc change the status of any vendor?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
8.1 Generally. Franchisee shall acquire all Inputs required by Care Plus Medical UCC from time to time in accordance with System Standards. Care Plus Medical UCC may require Franchisee to purchase or lease any Inputs from Care Plus Medical UCC, Care Plus Medical UCC's designee, Required Vendors, Approved Vendors, and/or under Care Plus Medical UCC's specifications. Care Plus Medical UCC may change any such requirement or change the status of any vendor. To make such requirement or change effective, Care Plus Medical UCC shall issue the appropriate System Standards.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, Care Plus Medical Ucc has the authority to modify the status of any vendor. This means Care Plus Medical Ucc can alter a vendor's designation, potentially impacting whether franchisees are required or permitted to use them. To implement such changes, Care Plus Medical Ucc will issue updated System Standards, which franchisees must then follow. System Standards are the mandatory procedures, requirements, and standards of the Care Plus Medical Ucc system as determined by Care Plus Medical Ucc. These standards can include requirements for equipment, inventory, marketing, and the quality of products and services.
This provision grants Care Plus Medical Ucc significant control over the supply chain. As a result, a Care Plus Medical Ucc franchisee must stay informed about changes to the System Standards to ensure compliance. If a franchisee wishes to use a vendor not already approved, they must seek approval from Care Plus Medical Ucc.
Care Plus Medical Ucc may negotiate prices and terms with vendors on behalf of the entire Care Plus Medical Ucc system and may also receive rebates, payments, or other considerations from vendors based on franchisee purchases. Care Plus Medical Ucc is not liable to the franchisee for any claims or losses related to products or services provided by approved or required vendors, including defects, delays, or unavailability. Therefore, franchisees bear the risk of vendor performance, even when those vendors are mandated by Care Plus Medical Ucc.