Who is considered an 'Owner' in the Care Plus Medical Ucc franchise agreement?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
Territory through channels of distribution (including the internet) other than Care Plus Medical outlets.
- 2.3 Franchisee Control. Franchisee represents that it will identify each owner, officer and director of Franchisee, and describes the nature and extent of each owner's interest in Franchisee. If any of this information changes, Franchisee shall notify Franchisor within 10 days.
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee. The Principal Executive must have at least 10% ownership interest in Franchisee. The Principal Executive does not have to serve as a day-today general manager of the Business, but the Principal Executive must devote substantial time and attention to the Business. If the Principal Executive dies, becomes incapacitated, transfers his/her interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to Care Plus Medical UCC's reasonable approval.
- 2.5 Guaranty. If Franchisee is an entity, then Franchisee shall have each Owner sign a personal guaranty of Franchisee's obligations to Care Plus Medical UCC, in the form of Attachment 3.
- **2.6 No Conflict.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, the franchise agreement stipulates several conditions related to 'Owners,' particularly when the franchisee is an entity. If the franchisee is an entity, Care Plus Medical Ucc requires each Owner to sign a personal guaranty, ensuring they are personally liable for the franchisee's obligations to Care Plus Medical Ucc.
Furthermore, if the franchisee is an entity, the agreement requires the franchisee to identify each owner, officer, and director, detailing the nature and extent of each owner's interest. Any changes to this information must be reported to Care Plus Medical Ucc within 10 days. The agreement also specifies that in the event of the death or incapacity of the Owner with the largest ownership interest in the franchisee entity, the business must be transferred within nine months to a third party approved by Care Plus Medical Ucc or to another person who was an Owner at the time of death or incapacity of the largest Owner.
Care Plus Medical Ucc also requires that the person designated as the 'Principal Executive' on the Summary Page must have at least a 10% ownership interest in the franchisee. This Principal Executive is primarily responsible for the business and has decision-making authority. These stipulations ensure that Care Plus Medical Ucc has recourse to individuals with a significant stake in the franchise and maintains control over key management positions.