Does the definition of 'Transfer' for Care Plus Medical Ucc include transfer of control of the business?

According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the definition of "Transfer" does include the transfer of control of the business. Specifically, the franchise agreement defines a transfer as the act of voluntarily or involuntarily transferring, selling, or disposing of, in a single or series of transactions, substantially all of the assets of the business, the agreement itself, any direct or indirect ownership interest in the business, or control of the business.

This definition is important for prospective franchisees because it clarifies the scope of actions that Care Plus Medical Ucc considers a transfer, which requires franchisor notification, consent, and may trigger other conditions. A franchisee needs to be aware that any action that results in a change of control, even without a direct sale of the business, falls under the transfer provisions of the franchise agreement.

Care Plus Medical Ucc requires at least 60 days prior notice of any proposed transfer from the franchisee and their consent. Care Plus Medical Ucc may impose conditions such as a $10,000 transfer fee plus broker fees and other out-of-pocket costs. The proposed assignee must also complete the franchise application process, meet the standards for new franchisees, and not be a competitor. The assignee will also need to execute Care Plus Medical Ucc's current form of franchise agreement, which may contain materially different provisions, although they will not be required to pay an initial franchise fee.