What is the Managed Operation Model for a Care Plus Medical Ucc franchise?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
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Under the managed operation path for the ownership, development, and operation of a Franchised Business, you will provide management, administrative, marketing, technology, and facility-based services, but not medical products, services, or advice, or judgment ("Management Services"), to a Practice Entity that is directly operated, and potentially owned, by one or more Licensed Providers ("Managed Operation Model"). We typically do not offer Franchised Businesses under the Managed Operation Model to Licensed Providers. A "Practice Entity" means 1 or more Licensed Providers, working together, atypically as a professional corporation, professional limited liability company, or other professional entity, who are licensed to offer and
provide medical products and services under applicable local, state, and federal laws and regulations.
For the ownership, development, and operation of a Franchised Business under the Managed Operation Model, you must sign our standard Franchise Agreement and Managed Services Addendum to Franchise Agreement (attached to this Disclosure Document as Exhibit K). You must also enter into a management services agreement ("Management Agreement") with a Practice Entity that we approve to provide the Practice Entity and its Licensed Providers the Management Services and grant them a sublicense to use the Names and Marks at or through the Franchised Business. You, as the franchisee, will be responsible for construction and build-out of the Franchised Business for use by the Practice Entity and its Licensed Providers and ensuring that the Practice Entity and its Licensed Providers operate the Franchised Business in conformance with our System, specifications, and standards, but only the Licensed Providers are permitted to exercise professional or medical judgment and to offer medical products or services. You must hire an attorney to prepare the Management Agreement and to independently evaluate, review, and ensure that your Management Agreement complies with all applicable local, state, and federal laws. The Management Agreement must be approved by us before you open your Franchised Business, and must remain in effect for the entire term of your Franchise Agreement.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–11)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the Managed Operation Model is a path for owning, developing, and operating a franchise where the franchisee provides management, administrative, marketing, technology, and facility-based services to a Practice Entity. This Practice Entity is operated, and potentially owned, by one or more Licensed Providers. Under this model, the franchisee does not provide medical products, services, advice, or judgment. Care Plus Medical Ucc typically does not offer franchises under the Managed Operation Model to Licensed Providers. A Practice Entity consists of one or more Licensed Providers working together, typically as a professional corporation, professional limited liability company, or other professional entity, who are licensed to offer and provide medical products and services under applicable local, state, and federal laws and regulations.
Under the Managed Operation Model, the franchisee must sign Care Plus Medical Ucc's standard Franchise Agreement and Managed Services Addendum to Franchise Agreement. The franchisee must also enter into a Management Agreement with a Practice Entity that Care Plus Medical Ucc approves. This agreement allows the Practice Entity and its Licensed Providers to receive Management Services and grants them a sublicense to use the Names and Marks at or through the Franchised Business. The franchisee is responsible for the construction and build-out of the Franchised Business for use by the Practice Entity and its Licensed Providers and ensuring that the Practice Entity and its Licensed Providers operate the Franchised Business in conformance with Care Plus Medical Ucc's System, specifications, and standards. However, only the Licensed Providers are permitted to exercise professional or medical judgment and to offer medical products or services.
The franchisee must hire an attorney to prepare the Management Agreement and to independently evaluate, review, and ensure that the Management Agreement complies with all applicable local, state, and federal laws. Care Plus Medical Ucc must approve the Management Agreement before the franchisee opens their Franchised Business, and it must remain in effect for the entire term of the Franchise Agreement. This model is particularly relevant in states with corporate practice of medicine doctrines, where only licensed medical professionals can provide medical services through a professional entity.