What is the Care Plus Medical Ucc 'Marketing Fund' used for?
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. 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:
- (a) Governance.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, the Marketing Fund is used for marketing, advertising, and public relations materials, programs, and campaigns at the local, regional, national, and international levels, including related overhead. These activities and expenses are determined by Care Plus Medical UCC and may include the development and placement of advertising and promotions, sponsorships, contests and sweepstakes, and the development of décor, trade dress, Marks, and branding. The fund also covers the 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 employee compensation and accounting, bookkeeping, reporting, and legal expenses.
Care Plus Medical Ucc has sole discretion over how the Marketing Fund is spent, and franchisees may not necessarily see a direct benefit proportionate to their contributions. Care Plus Medical Ucc is not obligated to ensure that all Care Plus Medical businesses contribute to the Marketing Fund or contribute the same amount. The franchisor may accumulate funds in the Marketing Fund and carry the balance over to subsequent years or loan funds to the Marketing Fund if it operates at a deficit.
Within 120 days of the close of Care Plus Medical Ucc's fiscal year, an unaudited annual financial statement of the Marketing Fund will be prepared and provided to franchisees upon request. Any funds left in a Market Cooperative upon termination will be transferred to the Marketing Fund. Franchisees are required to contribute to the Marketing Fund, paying 1% of their gross sales, and if the Business participates in a Market Cooperative, then the franchisee shall contribute a percentage of Gross Sales (or other amount) determined by the Market Cooperative, not to exceed 5%.