What is the 'Marketing Fund' for Care Plus Medical Ucc?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.3 Marketing Contributions.
(a) Marketing Fund Contribution. Franchisee shall pay Care Plus Medical UCC a contribution to the Marketing Fund (the "Marketing Fund Contribution") equal to 1% of Franchisee's Gross Sales (or such lesser amount as Care Plus Medical UCC determines), at the same time as the Royalty Fee.
- (b) Market Cooperative Contribution. If the Business participates in a Market Cooperative, then Franchisee shall contribute to the Market Cooperative a percentage of Gross Sales (or other amount) determined by the Market Cooperative, not to exceed 5%.
- 4.4 Replacement / Additional Training Fee. If Franchisee sends an employee to Care Plus Medical UCC's training program after opening, Care Plus Medical UCC may charge its thencurrent training fee. As of the date of this Agreement, the training fee is $450 per day.
- 4.5 Non-Compliance Fee. Care Plus Medical UCC may charge Franchisee $500 for any instance of non-compliance with the System Standards or this Agreement (other than Franchisee's non-payment of a fee owed to Care Plus Medical UCC) which Franchisee fails to cure after 30 days' notice. Thereafter, Care Plus Medical UCC may charge Franchisee $250 per week until Franchisee ceases such non-compliance. This fee is a reasonable estimate of Care Plus Medical UCC's internal cost of personnel time attributable to addressing the non-compliance, and it is not a penalty or estimate of all damages arising from Franchisee's breach. The non-compliance fee is in addition to all of Care Plus Medical UCC's other rights and remedies (including default and termination under Section 14.2).
- 4.6 Reimbursement. Care Plus Medical UCC may (but is never obligated to) pay on Franchisee's behalf any amount that Franchisee owes to a supplier or other third party. If Care Plus Medical UCC does so or intends to do so, Franchisee shall pay such amount plus a 10% administrative charge to Care Plus Medical UCC within 15 days after invoice by Care Plus Medical UCC accompanied by reasonable documentation. [Item 22: CONTRACTS]
relations, include any social media policy that Care Plus Medical UCC may prescribe. Franchisee shall implement any marketing plans or campaigns determined by Care Plus Medical UCC.
9.2 Use by Care Plus Medical UCC. Care Plus Medical UCC may use any marketing materials or campaigns developed by or on behalf of Franchisee, and Franchisee hereby grants an unlimited, perpetual, royalty-free license to Care Plus Medical UCC for such purpose.
9.3 Marketing Fund. Care Plus Medical UCC may establish a Marketing Fund to promote the System on a local, regional, national, and/or international level.
If Care Plus Medical UCC has established a Marketing Fund:
- (a) Separate Account.
Care Plus Medical UCC shall hold the Marketing Fund Contributions from all franchisees in one or more bank accounts separate from Care Plus Medical UCC's other accounts.
- (b) Use.
Care Plus Medical UCC shall use the Marketing Fund only for marketing, advertising, and public relations materials, programs and campaigns (including at local, regional, national, and/or international level), and related overhead.
The foregoing includes such activities and expenses as Care Plus Medical UCC reasonably determines, and may include, without limitation: development and placement of advertising and promotions; sponsorships; contests and sweepstakes; development of décor, trade dress, Marks, and/or branding; development and maintenance of brand websites; social media; internet activities; e-commerce programs; search engine optimization; market research; public relations, media or agency costs; trade shows and other events; printing and mailing; and administrative and overhead expenses related to the Marketing Fund (including the compensation of Care Plus Medical UCC's employees working on marketing and for accounting, bookkeeping, reporting, legal and other expenses related to the Marketing Fund).
- (c) Discretion.
Franchisee agrees that expenditures from the Marketing Fund need not be proportionate to contributions made by Franchisee or provide any direct or indirect benefit to Franchisee.
The Marketing Fund will be spent at Care Plus Medical UCC's sole discretion, and Care Plus Medical UCC has no fiduciary duty with regard to the Marketing Fund.
- (d) Contribution by Other Outlets.
[Item 22: CONTRACTS]
- (f) Financial Statement.
Care Plus Medical UCC will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of Care Plus Medical UCC's fiscal year and will provide the financial statement to Franchisee upon request.
- 9.4 Market Cooperatives. Care Plus Medical UCC may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas.
If a Market Cooperative for the geographic area encompassing the Location has been established at the time Franchisee commences operations hereunder, Franchisee shall immediately become a member of such Market Cooperative.
If a Market Cooperative for the geographic area encompassing the Location is established during the term of this Agreement, Franchisee shall become a member of such Market Cooperative within 30 days.
Care Plus Medical UCC shall not require Franchisee to be a member of more than one Market Cooperative.
If Care Plus Medical UCC establishes a Market Cooperative:
[Item 22: CONTRACTS]
- (f) Termination.
Care Plus Medical UCC may terminate any Market Cooperative.
Any funds left in a Market Cooperative upon termination will be transferred to the Marketing Fund.
- 9.5 Required Spending. Franchisee shall spend at least 2% of Gross Sales each month on marketing the Business.
Upon request of Care Plus Medical UCC, Franchisee shall furnish proof
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the Marketing Fund is established to promote the Care Plus Medical Ucc system on various levels, including local, regional, national, and international. Franchisees are required to contribute to this fund, with the contribution being 1% of the franchisee's gross sales, although Care Plus Medical Ucc can determine a lesser amount. These contributions are to be paid at the same time as the royalty fee.
The funds collected are to be used strictly for marketing, advertising, and public relations activities. These activities may include developing and placing advertisements, sponsorships, managing websites and social media, conducting market research, and covering administrative expenses related to these marketing efforts. Care Plus Medical Ucc maintains full discretion over how the Marketing Fund is spent, and these expenditures do not need to be directly proportionate to the contributions made by individual franchisees, nor do they need to provide direct benefits to each franchisee.
Care Plus Medical Ucc is required to keep the Marketing Fund contributions in a separate bank account from its other accounts. Within 120 days after the close of Care Plus Medical Ucc's fiscal year, Care Plus Medical Ucc will prepare an unaudited annual financial statement of the Marketing Fund and provide it to the franchisee upon request. Additionally, any funds left in a Market Cooperative upon termination will be transferred to the Marketing Fund.
In addition to the Marketing Fund, franchisees are also required to spend at least 2% of gross sales each month on local marketing for their business. Contributions to a local Market Cooperative, which can range from 1% to 5% of gross sales, may count toward this 2% marketing requirement, at Care Plus Medical UCC's discretion.