What is the initial term length of the Care Plus Medical Ucc franchise agreement?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 3. TERM
- 3.1 Term. This Agreement commences on the Effective Date and continues for 10 years.
- 3.2 Successor Agreement. When the term of this Agreement expires, Franchisee may enter into a successor agreement subject to the following conditions prior to each expiration:
- (i) Franchisee notifies Care Plus Medical UCC of the election to renew between 90 and 180 days prior to the end of the term;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with Care Plus Medical UCC (or any of its affiliates) at the time of election and at the time of renewal;
- (iii) Franchisee has made or agrees to make (within a period of time acceptable to Care Plus Medical UCC) renovations and changes to the Business as Care Plus Medical UCC requires (including a Remodel, if applicable) to conform to the then-current System Standards;
- (iv) Franchisee and its Owners execute Care Plus Medical UCC's then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that Franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in this Section;
- (v) Franchisee and each Owner executes a general release (on Care Plus Medical UCC's then-standard form) of any and all claims against Care Plus Medical UCC, its affiliates, and their respective owners, officers, directors, agents and employees.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the initial term of the franchise agreement is 10 years, commencing on the effective date of the agreement. This means that a franchisee will operate under the terms and conditions of the agreement for a decade, provided they remain in compliance.
At the end of the initial 10-year term, the franchisee has the option to enter into a successor agreement with Care Plus Medical Ucc. However, this is contingent upon meeting several conditions. The franchisee must notify Care Plus Medical Ucc of their intent to renew within a specific window, between 90 and 180 days prior to the term's expiration.
Furthermore, the franchisee must be in full compliance with the existing agreement and any other agreements with Care Plus Medical Ucc or its affiliates, both at the time of election and at the time of renewal. Care Plus Medical Ucc may also require renovations or changes to the business to meet the then-current system standards. The franchisee will also need to execute Care Plus Medical Ucc's current standard franchise agreement, which may contain different terms and fees, and provide a general release of claims against Care Plus Medical Ucc.