How does Care Plus Medical Ucc determine the territory granted to a franchisee?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
6.1 Determining Location and Territory.
- (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 12 — TERRITORY (FDD pages 28–30)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the territory granted to a franchisee is determined through a process involving the franchisee finding a potential location within a defined development area. The franchisee then submits this proposed location to Care Plus Medical Ucc for acceptance, along with any related information requested by Care Plus Medical Ucc. If Care Plus Medical Ucc does not accept the proposed location in writing within 30 days, it is considered rejected.
Upon acceptance of the location, Care Plus Medical Ucc issues a Location Acceptance Letter, which specifies both the location and the territory. Care Plus Medical Ucc determines the territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. This suggests that the territory determination is not arbitrary but follows some established criteria, though the specifics of those criteria are not detailed in this section.
If Care Plus Medical Ucc fails to define the territory in writing within 60 days after the franchisee opens the business to the public, the territory is automatically defined as the zip code where the location operates from, plus the immediately surrounding zip codes, encompassing a total population of 100,000. This default definition provides a safety net for the franchisee, ensuring a defined territory even if Care Plus Medical Ucc does not act promptly. However, Care Plus Medical Ucc explicitly states that its advice or acceptance of a site does not guarantee the business's success and that it bears no liability regarding the location of the business.