What constitutes the 'costs of collection' that Care Plus Medical Ucc franchisees are responsible for?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Costs of collection | Our actual costs | As incurred | Payable if we incur costs (including reasonable attorney fees) in attempting to collect amounts you owe to us. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, franchisees are responsible for the brand's actual costs of collection. These costs are incurred when Care Plus Medical Ucc attempts to collect amounts that a franchisee owes to them. These costs are payable as they are incurred.
The costs of collection include reasonable attorney fees. This means that if Care Plus Medical Ucc has to hire an attorney to pursue unpaid debts from a franchisee, the franchisee will be responsible for covering those legal expenses.
This could potentially become a significant expense for a Care Plus Medical Ucc franchisee if they fall behind on payments and the franchisor pursues legal action to recover the debt. It is important for prospective franchisees to understand this potential liability and ensure they have a solid financial plan in place to avoid falling into arrears with Care Plus Medical Ucc.