What happens if Care Plus Medical Ucc does not exercise its right of first refusal?

According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, if Care Plus Medical Ucc chooses not to exercise its right of first refusal regarding a proposed transfer of the franchise, the franchisee is then permitted to proceed with the transfer. However, this transfer is still subject to all other terms and conditions outlined in the franchise agreement.

This means that while Care Plus Medical Ucc waives its opportunity to purchase the assets themselves, the franchisee must still meet all other obligations before finalizing the transfer. These obligations likely include ensuring the proposed transferee meets Care Plus Medical Ucc's standards and qualifications.

This clause protects Care Plus Medical Ucc by allowing them to approve any new franchisee and ensures that the brand standards are upheld even if they do not buy the franchise back themselves. For a franchisee, this means they can sell their franchise if Care Plus Medical Ucc declines to buy it, but they can't just sell to anyone; they must find a buyer that Care Plus Medical Ucc approves.