How does Care Plus Medical UCC determine the territory for a franchise location?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
- (i) Franchisee shall find a potential Location within the Development Area described on the Summary Page. Franchisee shall submit its proposed Location to Care Plus Medical UCC for acceptance, with all related information Care Plus Medical UCC may request. If Care Plus Medical UCC does not accept the proposed Location in writing within 30 days, then it is deemed rejected.
- (ii) When Care Plus Medical UCC accepts the Location, it will issue a Location Acceptance Letter in the form of Attachment 2 which states the Location and Territory. Care Plus Medical UCC shall determine the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If Care Plus Medical UCC fails to state the Territory in writing within 60 days after Franchisee opens the Business to the public, the Territory will be deemed to be the zip code where the location is operated from and the zip codes which immediately surround the location of the franchised business and together add up to 100,000 population.
- (iii) Care Plus Medical UCC's advice regarding or acceptance of a site is not a representation or warranty that the Business will be successful, and Care Plus Medical UCC has no liability to Franchisee with respect to the location of the Business.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical UCC's 2024 Franchise Disclosure Document, the franchisee is responsible for finding a potential location within the designated Development Area, as outlined on the Summary Page. The franchisee must then submit this proposed location to Care Plus Medical UCC for approval, including any related information requested by Care Plus Medical UCC. If Care Plus Medical UCC does not provide written acceptance within 30 days, the location is considered rejected.
Upon accepting the location, Care Plus Medical UCC will issue a Location Acceptance Letter, which specifies both the location and the territory granted to the franchisee. Care Plus Medical UCC determines the territory at its discretion, acting in good faith and substantially following the guidelines in Item 12 of the Franchise Disclosure Document. However, if Care Plus Medical UCC fails to define the territory in writing within 60 days after the franchisee opens for business, the territory will default to the zip code of the franchise location and the immediately surrounding zip codes, encompassing a total population of 100,000.
It's important to note that Care Plus Medical UCC's approval or advice regarding a location does not guarantee the success of the business, and Care Plus Medical UCC assumes no liability related to the location's performance. The franchisee is responsible for constructing or remodeling the location to meet Care Plus Medical UCC's System Standards, potentially requiring the engagement of a licensed architect. Care Plus Medical UCC also retains the right to establish or license other businesses outside the franchisee's territory, even if they are nearby or impact the franchisee's business, as long as they do not operate under the Care Plus Medical brand. They can also sell products and services within the territory through other distribution channels, including the internet.