If a Care Plus Medical UCC franchisee leases the Location, what are their obligations?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee leases the Location, Franchisee shall comply with its lease for the Location and make all rent payments when due.
- 6.2 Lease. In connection with any lease between Franchisee and the landlord of the Location: (i) if requested by Care Plus Medical UCC, Franchisee must submit the proposed lease to Care Plus Medical UCC for written approval, (ii) the term of the lease (including renewal terms) must be for a period of not less than the term of this Agreement, and (iii) Franchisee shall use commercially reasonable efforts to obtain the landlord's signature to a rider to the lease in the form required 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 leases their business location, they are obligated to comply with the terms of the lease agreement and ensure that all rent payments are made on time.
Care Plus Medical UCC also requires that if they request it, the franchisee must submit the proposed lease for written approval. The lease term, including any renewal options, must be no less than the term of the Franchise Agreement. Furthermore, the franchisee must use commercially reasonable efforts to have the landlord sign a rider to the lease in the form required by Care Plus Medical UCC.
These stipulations ensure that Care Plus Medical UCC has some control over the lease terms and conditions, protecting their interests and brand standards. It is common practice in franchising to have some oversight over the lease agreement to protect the franchisor's brand and ensure business continuity.