Can Care Plus Medical Ucc change the System Standards?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
Care Plus Medical UCC conducted the audit because Franchisee failed to submit required reports or was otherwise not in compliance with the System, or (ii) the audit reveals that Franchisee understated Gross Sales by 3% or more for any 4-week period.
ARTICLE 11. FRANCHISOR RIGHTS
- 11.1 Manual; Modification. The Manual, and any part of the Manual, may be in any form or media determined by Care Plus Medical UCC. Care Plus Medical UCC may supplement, revise, or modify the Manual, and Care Plus Medical UCC may change, add or delete System Standards at any time in its discretion. Care Plus Medical UCC may inform Franchisee thereof by any method that Care Plus Medical UCC deems appropriate (which need not qualify as "notice" under Section 18.9). In the event of any dispute as to the contents of the Manual, Care Plus Medical UCC's master copy will control.
- 11.2 Inspections. Care Plus Medical UCC may enter the premises of the Business from time to time during normal business hours and conduct an inspection. Franchisee shall cooperate with Care Plus Medical UCC's inspectors. The inspection may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies and materials. Care Plus Medical UCC may videotape and/or take photographs of the inspection and the Business. Care Plus Medical UCC may set a minimum score requirement for inspections, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement.
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 change, add, or delete System Standards at any time and at its discretion. The document also states that Care Plus Medical Ucc may inform franchisees of these changes through any method they deem appropriate. This includes amending the Manual and giving binding notice of changes to System Standards via electronic communication. Franchisees are obligated to comply with these changes within a reasonable time, and at their own expense.
This means that as a Care Plus Medical Ucc franchisee, you must stay informed of any changes to the System Standards, as these can be altered at any time. It is important to note that the method of communication for these changes is at Care Plus Medical Ucc's discretion, so it is the franchisee's responsibility to remain up-to-date. Failure to comply with changes to System Standards could result in a breach of the franchise agreement.
Furthermore, Care Plus Medical Ucc may vary or waive any System Standard for any one or more Care Plus Medical franchises due to specific circumstances such as site peculiarities, population density, business potential, trade area population, existing business practices, applicable laws, or any other relevant condition. However, the franchisee is not entitled to the same variation or waiver. This clause provides Care Plus Medical Ucc with flexibility in adapting the System Standards to different market conditions, but it also means that franchisees may not have the same flexibility or exceptions granted to others.
Care Plus Medical Ucc also retains the right to modify or discontinue any Marks used under the System, and franchisees must comply with these changes at their own expense within a reasonable time. This extends Care Plus Medical Ucc's control over brand standards and requires franchisees to invest further in rebranding or updating materials as directed. Franchisees should be prepared for potential costs associated with these changes to maintain compliance with the franchise agreement.