Does the liquidated damages payment to Care Plus Medical Ucc cover all potential damages?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee's payment to Care Plus Medical UCC under this Section will be in lieu of any direct monetary damages that Care Plus Medical UCC may incur as a result of Care Plus Medical UCC's loss of Royalty Fees and Marketing Fund Contributions that would have been owed to Care Plus Medical UCC after the date of termination; however, such payment shall be in addition to all damages and other amounts arising under Section 14.3 and Section 14.4, Care Plus Medical UCC's right to injunctive relief for enforcement of Article 13, and any attorneys' fees and other costs and expenses to which Care Plus Medical UCC is entitled under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the liquidated damages payment does not cover all potential damages. The document specifies that the payment is intended to cover the loss of Royalty Fees and Marketing Fund Contributions that Care Plus Medical Ucc would have received after the termination date.
However, this payment is in addition to other damages and amounts that Care Plus Medical Ucc may seek. Specifically, Care Plus Medical Ucc retains the right to pursue damages and other amounts arising under Section 14.3 and Section 14.4 of the agreement, seek injunctive relief for enforcement of Article 13, and recover attorneys' fees and other costs and expenses as permitted by the agreement.
In practical terms, this means that if a franchisee terminates the agreement improperly, they will owe Care Plus Medical Ucc a liquidated damages payment calculated based on past royalties and marketing fund contributions. However, the franchisee may also be liable for additional costs and damages beyond this liquidated amount, such as legal fees or damages related to specific breaches of the agreement. A prospective franchisee should carefully review Sections 14.3, 14.4, and Article 13 to understand the full scope of potential liabilities upon termination.