What is the consequence of non-compliance with any System Standard by a Care Plus Medical Ucc franchisee?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
to meet or exceed the minimum score will be a default under this Agreement. Without limiting Care Plus Medical UCC's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an inspection. If Care Plus Medical UCC conducts an inspection because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee (including following up a previous failed inspection), then Care Plus Medical UCC may charge all out-of-pocket expenses plus its then-current inspection fee to Franchisee.
- 11.3 Care Plus Medical UCC's Right to Cure. If Franchisee breaches or defaults under any provision of this Agreement, Care Plus Medical UCC may (but has no obligation to) take any action to cure the default on behalf of Franchisee, without any liability to Franchisee. Franchisee shall reimburse Care Plus Medical UCC for its costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
- 11.4 Right to Discontinue Supplies Upon Default. While Franchisee is in default or breach of this Agreement, Care Plus Medical UCC may (i) require that Franchisee pay cash on delivery for products or services supplied by Care Plus Medical UCC, (ii) stop selling or providing any products and services to Franchisee, and/or (iii) request any third-party vendors to not sell or provide products or services to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, if a franchisee fails to comply with any System Standard, Care Plus Medical Ucc has the right to conduct an inspection. If the inspection is conducted due to this non-compliance, Care Plus Medical Ucc may charge the franchisee for all out-of-pocket expenses, plus their then-current inspection fee.
Additionally, if a franchisee breaches or defaults under any provision of the Franchise Agreement, Care Plus Medical Ucc has the option, but not the obligation, to take action to correct the default on behalf of the franchisee, without incurring any liability. While the franchisee is in default or breach of the agreement, Care Plus Medical Ucc can demand cash on delivery for products or services, stop providing products and services to the franchisee, and/or ask third-party vendors to cease selling or providing products or services to the franchisee. These actions by Care Plus Medical Ucc do not constitute a breach or constructive termination of the agreement, and the franchisee remains obligated under the agreement.
Furthermore, if Care Plus Medical UCC discovers any aspect of the business that poses an imminent danger to health or safety, the franchisee must immediately cease operations and remedy the dangerous condition upon Care Plus Medical UCC's order. Care Plus Medical UCC will not be liable for any action or failure to act regarding a dangerous condition.