Is the Care Plus Medical Ucc Marketing Fund established or may it be established?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
C.** 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. Care Plus Medical UCC is not obligated to (i) have all other Care Plus Medical businesses (whether owned by other franchisees or by Care Plus Medical UCC or its affiliates) contribute to the Marketing Fund, or (ii) have other Care Plus Medical businesses that do contribute to the Marketing Fund contribute the same amount or at the same rate as Franchisee.
- (e) Surplus or Deficit. Care Plus Medical UCC may accumulate funds in the Marketing Fund and carry the balance over to subsequent years. If the Marketing Fund operates at a deficit or requires additional funds at any time, Care Plus Medical UCC may loan such funds to the Marketing Fund on reasonable terms.
- (f) Financial Statement.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, Care Plus Medical Ucc may establish a Marketing Fund. The document states, "Care Plus Medical UCC may establish a Marketing Fund to promote the System on a local, regional, national, and/or international level." This indicates that while a Marketing Fund is not mandatory, Care Plus Medical Ucc reserves the right to create one at its discretion.
If Care Plus Medical Ucc establishes a Marketing Fund, it will hold contributions from all franchisees in one or more separate bank accounts. The funds are to be used for marketing, advertising, and public relations activities, including the development and placement of advertising, sponsorships, website maintenance, social media, market research, and administrative expenses. Franchisees are required to contribute to this fund, paying 1% of their gross sales, as stated in section 4.3(a).
Care Plus Medical Ucc has sole discretion over how the Marketing Fund is spent, and expenditures do not need to be proportionate to individual franchisee contributions or provide direct benefits to each franchisee. Additionally, Care Plus Medical Ucc may accumulate funds in the Marketing Fund and carry over any balance to subsequent years or loan funds to the Marketing Fund if it operates at a deficit. Care Plus Medical Ucc will provide an unaudited annual financial statement of the Marketing Fund to franchisees upon request, within 120 days of the close of Care Plus Medical UCC's fiscal year.