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If Care Plus Medical Ucc delegates responsibility for administration of the cooperative, to whom might they delegate?

Care_Plus_Medical_Ucc Franchise · 2024 FDD

Answer from 2024 FDD Document

We administer the cooperative, but we have the right to delegate responsibility for administration to an outside company such as an advertising agency or accounting firm, or to the franchisee members of the cooperative.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–28)

What This Means (2024 FDD)

According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, Care Plus Medical Ucc has the right to delegate the administration of the local or regional advertising cooperative. This delegation can be to an outside company, such as an advertising agency or accounting firm. Alternatively, Care Plus Medical Ucc can delegate this responsibility to the franchisee members of the cooperative themselves.

This means that as a Care Plus Medical Ucc franchisee, you may be subject to contributing between 1% and 5% of your gross sales to a cooperative, and the administration of that cooperative could be handled by a third-party firm or by fellow franchisees. The amount you contribute will be determined by a vote of the members. If Care Plus Medical Ucc's own outlets are members, they contribute and vote on the same basis as franchisees.

It's important to note that Care Plus Medical Ucc retains the right to require the cooperative to operate from written bylaws or other governing documents that they determine. These documents are not currently available for review. Care Plus Medical Ucc also has the power to require cooperatives to be formed, changed, dissolved, or merged, giving them significant control over these advertising entities. Cooperatives will prepare annual financial statements which will be made available for review only by Care Plus Medical Ucc and by the members of cooperative.

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.