What is the Care Plus Medical Ucc Franchisee's responsibility for compliance with the System?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
a location which requires travel by the Principal Executive or any other employee, then Franchisee shall pay all travel, living and other expenses.
- 7.7 Software. Without limiting the generality of Section 7.1 or Section 8.1, Franchisee shall acquire and use all software and related systems required by Care Plus Medical UCC. Franchisee shall enter into any subscription and support agreements that Care Plus Medical UCC may require. Franchisee shall upgrade, update, or replace any software from time to time as Care Plus Medical UCC may require. Franchisee shall protect the confidentiality and security of all software systems, and Franchisee shall abide by any System Standards related thereto. Franchisee shall give Care Plus Medical UCC unlimited access to Franchisee's point of sale system and other software systems used in the Business, by any means designated by Care Plus Medical UCC.
- 7.8 Customer Complaints. Franchisee shall use its best efforts to promptly resolve any customer complaints. Care Plus Medical UCC may take any action it deems appropriate to resolve a customer complaint regarding the Business, and Care Plus Medical UCC may require Franchisee to reimburse Care Plus Medical UCC for any expenses.
- 7.9 Evaluation and Compliance Programs. Franchisee shall participate at its own expense in programs required from time to time by Care Plus Medical UCC for obtaining customer evaluations, reviewing Franchisee's compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey programs, and mystery shopping. Care Plus Medical UCC shall share with Franchisee the results of these programs, as they pertain to the Business. Franchisee must meet or exceed any minimum score requirements set by Care Plus Medical UCC for such programs. Care Plus Medical UCC may set minimum scores that Franchisee must receive from the public on internet review sites (such as Yelp or Google).
- 7.10 Payment Systems. Franchisee shall accept payment from customers in any form or manner designated by Care Plus Medical UCC (which may include, for example, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems). Franchisee shall purchase or lease all equipment and enter into all business relationships necessary to accept payments as required by Care Plus Medical UCC. Franchisee must at all times comply with payment card industry data security standards (PCI-DSS).
- 7.11 Gift Cards, Loyalty Programs, and Incentive Programs. At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Care Plus Medical UCC, in the manner specified by Care Plus Medical UCC in the Manual or otherwise in writing. Franchisee shall honor all valid gift cards and other pre-paid systems, regardless of whether issued by Franchisee or another Care Plus Medical business. Franchisee shall comply with all procedures and specifications of Care Plus Medical UCC related to gift cards, certificates, and other pre-paid systems, or related to customer loyalty, membership/subscription, or customer incentive programs.
- 7.12 Maintenance and Repair. Franchisee shall at all times keep the Business in a neat and clean condition, perform all appropriate maintenance, and keep all physical property in good repair. In addition, Franchisee shall promptly perform all work on the physical property of the Business as Care Plus Medical UCC may prescribe from time to time, including but not limited to periodic interior and exterior painting; resurfacing of the parking lot; roof repairs; and replacement of obsolete or worn out signage, floor coverings, furnishings, equipment and décor. Franchisee
acknowledges that the System Standards may include requirements for cleaning, maintenance, and repair.
- 7.13 Remodeling. In addition to Franchisee's obligations to comply with all System Standards in effect from time to time, Care Plus Medical UCC may require Franchisee to undertake and complete a Remodel of the Location to Care Plus Medical UCC's satisfaction. Franchisee must complete the Remodel in the time frame specified by Care Plus Medical UCC. Care Plus Medical UCC may require the Franchisee to submit plans for Care Plus Medical UCC's reasonable approval prior to commencing a required Remodel. Care Plus Medical UCC's right to require a Remodel is limited as follows: (i) the Remodel will not be required in the first two or last two years of the term (except that a Remodel may be required as a condition to renewal of the term or a Transfer), and (ii) a Remodel will not be required more than once every five years from the date on which Franchisee was required to complete the prior Remodel.
- 7.14 Meetings. The Principal Executive shall use reasonable efforts to attend all in-person meetings and remote meetings (such as telephone conference calls) that Care Plus Medical UCC requires, including any national or regional brand conventions. Franchisee shall not permit the Principal Executive to fail to attend more than three consecutive required meetings.
7.15 Insurance.
- (a) Franchisee shall obtain and maintain insurance policies in the types and amounts as specified by Care Plus Medical UCC in the Manual. If not specified in the Manual, Franchisee shall maintain at least the following insurance coverage:
- (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible);
- (ii) Business interruption insurance covering at least 12 months of income;
- (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit;
- (iv) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000; and
- (v) Workers Compensation coverage as required by state law.
- (b) Franchisee's policies (other than Workers Compensation) must (1) list Care Plus Medical UCC and its affiliates as an additional insured, (2) include a waiver of subrogation in favor of Care Plus Medical UCC and its affiliates, (3) be primary and non-contributing with any insurance carried by Care Plus Medical UCC or its affiliates, and (4) stipulate that Care Plus Medical UCC shall receive 30 days' prior written notice of cancellation.
- (c) Franchisee shall provide Certificates of Insurance evidencing the required coverage to Care Plus Medical UCC prior to opening and upon annual renewal of the insurance coverage, as well as at any time upon request of Care Plus Medical UCC.
- 7.16 Payments to Third Parties. Franchisee shall pay all vendors and suppliers in a timely manner. Franchisee shall pay all taxes when due.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 FDD, Care Plus Medical UCC franchisees must adhere to numerous standards and requirements to maintain consistency and quality across the franchise system. This includes using specified software and systems, resolving customer complaints, participating in evaluation and compliance programs, and meeting minimum performance scores on customer reviews. Franchisees must also accept payment methods designated by Care Plus Medical UCC and participate in required gift card, loyalty, and incentive programs.
Franchisees are responsible for maintaining the physical condition of their business, including cleanliness, maintenance, and repairs as prescribed by Care Plus Medical UCC. They must also ensure their personnel provide competent and courteous service, comply with appearance standards, and meet any minimum qualifications set by Care Plus Medical UCC. While franchisees manage their employees, Care Plus Medical UCC retains the right to mandate training programs for the franchisee's staff.
Furthermore, franchisees must acquire all required inputs, such as supplies and equipment, from approved or required vendors and use only authorized trademarks and service marks. Care Plus Medical UCC can modify these marks, and franchisees must comply with these changes at their own expense. Franchisees must also adhere to any code of ethics or statement of values from Care Plus Medical UCC and avoid actions that could harm the goodwill associated with the brand. These comprehensive requirements ensure that all Care Plus Medical UCC franchises operate under a unified standard, which can impact a franchisee's operational flexibility and costs.