Is a Care Plus Medical Ucc franchisee required to use Required Vendors?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
ards in a manner consistent with the image then in effect for a new Care Plus Medical business.
- "Required Vendor" means a supplier, vendor, or distributor of Inputs which Care Plus Medical UCC requires franchisees to use.
- "System Standards" means, as of any given time, the then-current mandatory procedures, requirements, and/or standards of the System as determined by Care Plus Medical UCC, which may include without limitation, any procedures, requirements and/or standards for appearance, business metrics, cleanliness, customer service, design (such as construction, decoration, layout, furniture, fixtures and signs), equipment, inventory, marketing and public relations, operating days, operating hours, presentation of Marks, product and service offerings, quality of products and services (including any guaranty and warranty programs), reporting, safety, technology (such as computers, computer peripheral equipment, smartphones, point-of-sale systems, back-office systems, information management systems, security systems, video monitors, other software, backup and archiving systems, communications systems (including email, audio, and video systems), payment acceptance systems, and internet access, as well as upgrades, supplements, and modifications thereto), uniforms, and vehicles.
- "Territory" means the territory stated on the Location Acceptance Letter.
- "Transfer" means for Franchisee (or any Owner) to voluntarily or involuntarily transfer, sell, or dispose of, in any single or series of transactions, (i) substantially all of the assets of the Business, (ii) this Agreement, (iii) any direct or indirect ownership interest in the Business, or (iv) control of the Business.
ARTICLE 2. GRANT OF LICENSE
- 2.1 Grant. Care Plus Medical UCC grants to Franchisee the right to operate a Care Plus Medical business solely at the Location. If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1. Franchisee shall develop, open and operate a Care Plus Medical business at the Location for the entire term of this Agreement.
- 2.2 Protected Territory. Care Plus Medical UCC shall not establish, nor license the establishment of, another business within the Territory selling the same or similar goods or services under the same or similar trademarks or service marks as a Care Plus Medical business. Care Plus Medical UCC retains the right to:
- (i) establish and license others to establish and operate Care Plus Medical businesses outside the Territory, notwithstanding their proximity to the Territory or their impact on the Business;
- (ii) operate and license others to operate businesses anywhere that do not operate under the Care Plus Medical brand name; and
- (iii) sell and license othersto sell products and services in the Territory through channels of distribution (including the internet) other than Care Plus Medical outlets.
- 2.3 Franchisee Control. Franchisee represents that it will identify each owner, officer and director of Franchisee, and describes the nature and extent of each owner's interest in 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 may be required to purchase inputs from Required Vendors. The FDD defines "Required Vendor" as a supplier, vendor, or distributor of inputs that Care Plus Medical UCC requires franchisees to use.
Care Plus Medical UCC may require franchisees to purchase or lease any inputs from Care Plus Medical UCC, Care Plus Medical UCC's designee, Required Vendors, Approved Vendors, and/or under Care Plus Medical UCC's specifications. These inputs must be acquired in accordance with the System Standards, which are the mandatory procedures, requirements, and/or standards of the Care Plus Medical UCC system. Care Plus Medical UCC has the right to change the status of any vendor or change any such requirement by issuing the appropriate System Standards.
If Care Plus Medical UCC requires the franchisee to purchase a particular input only from an Approved Vendor or Required Vendor, and the franchisee wants to purchase the input from another vendor, the franchisee must submit a written request for approval with any information, specifications, and/or samples requested by Care Plus Medical UCC. Care Plus Medical UCC will then provide written notification of the approval or disapproval of any proposed new vendor within 30 days after receipt of the franchisee's request. This approval may be based on criteria such as the vendor's capacity, quality, financial stability, reputation, and reliability, as well as inspections, product testing, and performance reviews.
Care Plus Medical UCC also states that it will not have any liability to the franchisee for any claim or loss related to any product provided or service performed by any Approved Vendor or Required Vendor, including without limitation defects, delays, or unavailability of products or services.