factual

What happens if a Care Plus Medical Ucc franchisee loses possession of the location?

Care_Plus_Medical_Ucc Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (v) Franchisee loses possession of the Location;

  • 14.4 Remove Identification. Within 30 days after termination or expiration, Franchisee shall at its own expense "de-identify" the Location so that it no longer contains the Marks, signage, or any trade dress of a Care Plus Medical business, to the reasonable satisfaction of Care Plus Medical UCC.

Franchisee shall comply with any reasonable instructions and procedures of Care Plus Medical UCC for de-identification.

If Franchisee fails to do so within 30 days after this Agreement expires or is terminated, Care Plus Medical UCC may enter the Location to remove the Marks and de-identify the Location.

In this event, Care Plus Medical UCC will not be charged with trespass nor be accountable or required to pay for any assets removed or altered, or for any damage caused by Care Plus Medical UCC.

Source: Item 22 — CONTRACTS (FDD page 41)

What This Means (2024 FDD)

According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, if a franchisee loses possession of their location, it constitutes a cause for termination of the franchise agreement. Specifically, the FDD states that "Franchisee loses possession of the Location" is a condition under which the agreement can be terminated. This means Care Plus Medical Ucc has grounds to end the franchise relationship if the franchisee no longer controls or occupies the agreed-upon business location.

Following the loss of possession and subsequent termination or expiration of the franchise agreement, the franchisee is obligated to take several actions. Within 30 days, the franchisee must "de-identify" the location, removing all Care Plus Medical Ucc marks, signage, and trade dress to Care Plus Medical UCC's satisfaction. Additionally, the franchisee must notify relevant entities (telephone, internet, directory services) about the termination and authorize the transfer of associated numbers, addresses, and listings to Care Plus Medical Ucc or a new franchisee.

If the franchisee fails to de-identify the location within the specified timeframe, Care Plus Medical Ucc has the right to enter the location and remove the marks and de-identify it themselves. The FDD explicitly states that Care Plus Medical Ucc will not be considered trespassing in such cases and will not be liable for any damage or loss of assets during the de-identification process. This provision protects Care Plus Medical Ucc's brand and ensures a consistent presentation, even after a franchise ceases operation.

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.