What is the dependency between the Indiana Acts and the provisions of the Care Plus Medical Ucc agreement?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
This Rider amends the Franchise and Multi-Unit Development Agreement dated (the "Agreement"), between Care Plus Medical UCC, LLC, a Wyoming Limited Liability Company ("Care Plus Medical UCC") and, a ("Franchisee").
- **1.
Definitions.** Capitalized terms used but not defined in this Rider have the meanings given in the Agreement.
The "Indiana Acts" means the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act.
- **2.
Certain Provisions Modified.** Any provision of the Agreement which would have any of the following effects is hereby modified to the extent required for the Agreement to be in compliance with the Indiana Acts:
- (1) Requiring goods, supplies, inventories, or services to be purchased exclusively from the franchisor or sources designated by the franchisor where such goods, supplies, inventories, or services of comparable quality are available from sources other than those designated by the franchisor.
However, the publication by the franchisor of a list of approved suppliers of goods, supplies, inventories, or services or the requirement that such goods, supplies, inventories, or services comply with specifications and standards prescribed by the franchisor does not constitute designation of a source nor does a reasonable right of the franchisor to disapprove a supplier constitute a designation.
This subdivision does not apply to the principal goods, supplies, inventories, or services manufactured or trademarked by the franchisor.
(2) Allowing the franchisor to establish a franchisor-owned outlet engaged in a substantially identical business to that of the franchisee within the exclusive territory granted the franchisee by the franchise agreement; or, if no exclusive territory is designated, permitting the franchisor to compete unfairly with the franchisee within a reasonable area.
(3) Allowing substantial modification of the franchise agreement by the franchisor without the consent in writing of the franchisee.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, the Indiana Rider to the Franchise and Multi-Unit Development Agreement modifies certain provisions of the standard agreement to ensure compliance with Indiana state laws, specifically the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act, collectively referred to as the "Indiana Acts." This rider is designed to bring the agreement in line with Indiana's specific regulations concerning franchising.
Specifically, the rider modifies any provision that would require a franchisee to purchase goods, supplies, inventories, or services exclusively from Care Plus Medical Ucc or its designated sources, provided that comparable quality items are available elsewhere. However, this modification does not prevent Care Plus Medical Ucc from publishing a list of approved suppliers or requiring compliance with specific standards, nor does it apply to principal goods, supplies, inventories, or services manufactured or trademarked by Care Plus Medical Ucc.
Additionally, the Indiana Rider addresses territorial exclusivity and modifications to the franchise agreement. It modifies any provision that would allow Care Plus Medical Ucc to establish a company-owned outlet engaged in a substantially identical business within the franchisee's exclusive territory or to compete unfairly with the franchisee in a reasonable area if no exclusive territory is designated. It also modifies any provision allowing substantial modification of the franchise agreement by Care Plus Medical Ucc without the franchisee's written consent. These modifications are crucial for protecting the franchisee's interests under Indiana law.