factual

What is the franchisee required to do if deficiencies are noted during a Care Plus Medical UCC inspection?

Care_Plus_Medical_Ucc Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 11.2 Inspections. Care Plus Medical UCC may enter the premises of the Business from time to time during normal business hours and conduct an inspection. Franchisee shall cooperate with Care Plus Medical UCC's inspectors. The inspection may include, but is not limited to, observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies and materials. Care Plus Medical UCC may videotape and/or take photographs of the inspection and the Business. Care Plus Medical UCC may set a minimum score requirement for inspections, and Franchisee's failure to meet or exceed the minimum score will be a default under this Agreement. Without limiting Care Plus Medical UCC's other rights under this Agreement, Franchisee will, as soon as reasonably practical, correct any deficiencies noted during an inspection. If Care Plus Medical UCC conducts an inspection because of a governmental report, customer complaint or other customer feedback, or a default or non-compliance with any System Standard by Franchisee (including following up a previous failed inspection), then Care Plus Medical UCC may charge all out-of-pocket expenses plus its then-current inspection fee to Franchisee.

Source: Item 22 — CONTRACTS (FDD page 41)

What This Means (2024 FDD)

According to Care Plus Medical UCC's 2024 Franchise Disclosure Document, franchisees are required to correct any deficiencies noted during an inspection as soon as reasonably practical. Care Plus Medical UCC has the right to inspect the premises of the business during normal business hours, and the franchisee must cooperate with these inspections. These inspections may include observing operations, conducting a physical inventory, evaluating physical conditions, monitoring sales activity, speaking with employees and customers, and removing samples of products, supplies, and materials. Care Plus Medical UCC may also videotape and/or take photographs of the inspection and the business.

Care Plus Medical UCC may set a minimum score requirement for inspections, and failure to meet or exceed this minimum score will be considered a default under the Franchise Agreement. If an inspection is conducted due to a governmental report, customer complaint, or a franchisee's non-compliance with System Standards (including following up on a previous failed inspection), Care Plus Medical UCC may charge the franchisee for all out-of-pocket expenses plus its then-current inspection fee.

Care Plus Medical UCC also retains the right, but not the obligation, to take action to cure any default on behalf of the franchisee without any liability to the franchisee. This means that if a franchisee fails to correct deficiencies, Care Plus Medical UCC can step in to rectify the issues, although they are not required to do so. Franchisees should be aware that maintaining compliance with System Standards and addressing any identified deficiencies promptly is crucial to avoid potential defaults and associated costs.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.