How does Care Plus Medical Ucc communicate changes to vendor requirements to franchisees?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
de of ethics or statement of values from Care Plus Medical UCC. Franchisee shall not take any action which may injure the goodwill associated with the Marks.
ARTICLE 8. SUPPLIERS AND VENDORS
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.
- 8.2 Alternate Vendor Approval. If Care Plus Medical UCC requires Franchisee to purchase a particular Input only from an Approved Vendor or Required Vendor, and Franchisee desires to purchase the Input from another vendor, then Franchisee must submit a written request for approval and any information, specifications and/or samples requested by Care Plus Medical UCC. Care Plus Medical UCC may condition its approval on such criteria as Care Plus Medical UCC deems appropriate, which may include evaluations of the vendor's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Care Plus Medical UCC will provide Franchisee with written notification of the approval or disapproval of any proposed new vendor within 30 days after receipt of Franchisee's request.
- 8.3 Alternate Input Approval. If Care Plus Medical UCC requires Franchisee to purchase a particular Input, and Franchisee desires to purchase an alternate to the Input, then Franchisee must submit a written request for approval and any information, specifications and/or samples requested by Care Plus Medical UCC. Care Plus Medical UCC will provide Franchisee with written notification of the approval or disapproval of any proposed alternate Input within 30 days after receipt of Franchisee's request.
- 8.4 Purchasing. Care Plus Medical UCC may negotiate prices and terms with vendors on behalf of the System. Care Plus Medical UCC may receive rebates, payments or other consideration from vendors in connection with purchases by franchisees. Care Plus Medical UCC has the right (but not the obligation) to collect payments from Franchisee on behalf of a vendor and remit the payments to the vendor and to impose a reasonable markup or charge for administering the payment program. Care Plus Medical UCC may implement a centralized purchasing system. Care Plus Medical UCC may establish a purchasing cooperative and require Franchisee to join and participate in the purchasing cooperative on such terms and conditions as Care Plus Medical UCC may determine.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, changes to vendor requirements are communicated through System Standards. Care Plus Medical UCC may change vendor requirements or the status of any vendor, and to make such changes effective, Care Plus Medical UCC will issue the appropriate System Standards. The FDD defines "System Standards" as the then-current mandatory procedures, requirements, and/or standards of the System as determined by Care Plus Medical UCC. These standards may include procedures, requirements, and/or standards for various aspects of the business, such as appearance, business metrics, cleanliness, customer service, design, equipment, inventory, marketing, operating days and hours, presentation of marks, product and service offerings, quality of products and services, reporting, safety, and technology.
This means that Care Plus Medical Ucc franchisees are obligated to adhere to the vendor requirements set forth in the System Standards. If Care Plus Medical Ucc decides to change a required vendor or the specifications of required inputs, it will do so by updating the System Standards. Franchisees are then responsible for complying with these updated standards. Care Plus Medical UCC has the right to modify these standards at any time and inform franchisees through any method it deems appropriate, which may not necessarily qualify as formal "notice."
If a franchisee wishes to use an alternate vendor or input, they must submit a written request for approval to Care Plus Medical UCC, including any information, specifications, and/or samples requested by Care Plus Medical UCC. Care Plus Medical UCC will then provide written notification of the approval or disapproval of the proposed new vendor or alternate input within 30 days after receiving the franchisee's request. Care Plus Medical UCC may condition its approval on criteria such as evaluations of the vendor's capacity, quality, financial stability, reputation, and reliability, as well as inspections, product testing, and performance reviews.
Care Plus Medical UCC may also negotiate prices and terms with vendors on behalf of the entire system and may receive rebates or other consideration from vendors based on franchisee purchases. They may also collect payments from franchisees on behalf of vendors and impose a reasonable charge for administering the payment program. Additionally, Care Plus Medical UCC may implement a centralized purchasing system or establish a purchasing cooperative that franchisees are required to join.