factual

Is the Initial Franchise Fee refundable for a Care Plus Medical Ucc franchise?

Care_Plus_Medical_Ucc Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fee to Care Plus Medical UCC. The Initial Franchise Fee is non-refundable.

Source: Item 23 — RECEIPTS (FDD pages 41–119)

What This Means (2024 FDD)

According to the 2024 Franchise Disclosure Document, the initial franchise fee for a Care Plus Medical Ucc franchise is non-refundable. Upon execution of the Multi-Unit Development Agreement (MUDA), the franchisee is required to pay the total initial franchise fee to Care Plus Medical UCC.

This means that a prospective franchisee should be aware that once the MUDA is signed and the initial franchise fee is paid, the franchisee will not be able to get that money back, regardless of whether they proceed with opening a Care Plus Medical Ucc business. This is a standard practice in franchising, as the initial fee covers the franchisor's initial expenses in setting up the franchisee.

However, the California Addendum to the Disclosure Document states that for California franchisees who sign a development agreement, the payment of the development and initial fees attributable to a specific unit in your development schedule is deferred until that unit is open. Therefore, franchisees in California may not have to pay the initial fee until they are open for business.

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.