For a Care Plus Medical Ucc franchise, what is the Managed Operation Model?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
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Under the managed operation path for the ownership, development, and operation of a Franchised Business, you will provide management, administrative, marketing, technology, and facility-based services, but not medical products, services, or advice, or judgment ("Management Services"), to a Practice Entity that is directly operated, and potentially owned, by one or more Licensed Providers ("Managed Operation Model"). We typically do not offer Franchised Businesses under the Managed Operation Model to Licensed Providers. A "Practice Entity" means 1 or more Licensed Providers, working together, atypically as a professional corporation, professional limited liability company, or other professional entity, who are licensed to offer and
provide medical products and services under applicable local, state, and federal laws and regulations.
For the ownership, development, and operation of a Franchised Business under the Managed Operation Model, you must sign our standard Franchise Agreement and Managed Services Addendum to Franchise Agreement (attached to this Disclosure Document as Exhibit K). You must also enter into a management services agreement ("Management Agreement") with a Practice Entity that we approve to provide the Practice Entity and its Licensed Providers the Management Services and grant them a sublicense to use the Names and Marks at or through the Franchised Business. You, as the franchisee, will be responsible for construction and build-out of the Franchised Business for use by the Practice Entity and its Licensed Providers and ensuring that the Practice Entity and its Licensed Providers operate the Franchised Business in conformance with our System, specifications, and standards, but only the Licensed Providers are permitted to exercise professional or medical judgment and to offer medical products or services. You must hire an attorney to prepare the Management Agreement and to independently evaluate, review, and ensure that your Management Agreement complies with all applicable local, state, and federal laws. The Management Agreement must be approved by us before you open your Franchised Business, and must remain in effect for the entire term of your Franchise Agreement.
Laws and Regulations
Operation of a Care Plus Medical will require you to be aware of federal, state and local regulations that are common to all businesses including federal, state, and local employment laws and regulations, specifically including minimum wage and wage requirements. We are not aware of any laws or regulations specific to the industry in which the franchise business operates*.*
Your Franchised Business will be subject to many federal, state, and local laws, regulations, and licensing requirements. You must comply with all laws, regulations, and licensing requirements that apply to your Franchised Business. You are responsible for investigating and evaluating the federal, state, and local laws that may apply to the structuring and operation of your Franchised Business, and the federal, state, and local restrictions regarding the ownership of your Franchised Business and the individuals that may or may not provide services through your Franchised Business.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–11)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the Managed Operation Model is a path for owning, developing, and operating a franchise where the franchisee provides management, administrative, marketing, technology, and facility-based services to a Practice Entity. This Practice Entity is operated, and potentially owned, by one or more Licensed Providers. Under this model, the franchisee does not provide medical products, services, advice, or judgment. Care Plus Medical Ucc typically does not offer franchises under the Managed Operation Model to Licensed Providers. A Practice Entity is defined as one or more Licensed Providers working together, typically as a professional corporation, professional limited liability company, or other professional entity, who are licensed to offer and provide medical products and services under applicable local, state, and federal laws and regulations.
To operate under the Managed Operation Model, a franchisee must sign Care Plus Medical Ucc's standard Franchise Agreement and Managed Services Addendum to Franchise Agreement. Additionally, the franchisee must enter into a Management Agreement with a Practice Entity approved by Care Plus Medical Ucc. This agreement allows the Practice Entity and its Licensed Providers to receive Management Services and grants them a sublicense to use the Names and Marks at the Franchised Business. The franchisee is responsible for the construction and build-out of the Franchised Business for use by the Practice Entity and its Licensed Providers and ensuring that the Practice Entity and its Licensed Providers operate the Franchised Business in conformance with Care Plus Medical Ucc's System, specifications, and standards. However, only the Licensed Providers are permitted to exercise professional or medical judgment and to offer medical products or services.
The franchisee is required to hire an attorney to prepare the Management Agreement and to independently evaluate, review, and ensure that the Management Agreement complies with all applicable local, state, and federal laws. Care Plus Medical Ucc must approve the Management Agreement before the Franchised Business opens, and it must remain in effect for the entire term of the Franchise Agreement. This model is designed to comply with the corporate practice of medicine doctrine in many states, which generally only permits medical professionals licensed by the state to provide medical services through a professional entity owned by licensed medical professionals. These laws may permit licensed medical professionals, or their professional practice entity, to contract with a non-licensed person or entity through a Managed Operation Model.