What is the minimum term required for the lease of a Care Plus Medical Ucc franchise location?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
6.2 Lease. In connection with any lease between Franchisee and the landlord of the Location: (i) if requested by Care Plus Medical UCC, Franchisee must submit the proposed lease to Care Plus Medical UCC for written approval, (ii) the term of the lease (including renewal terms) must be for a period of not less than the term of this Agreement, and (iii) Franchisee shall use commercially reasonable efforts to obtain the landlord's signature to a rider to the lease in the form required by Care Plus Medical UCC.
6.3 Development. Franchisee shall construct (or remodel) and finish the Location in conformity with Care Plus Medical UCC's System Standards.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, if a franchisee leases a location, the lease term, including any renewal options, must be no less than the term of the franchise agreement itself.
The standard Care Plus Medical Ucc franchise agreement has a term of 10 years. This means that a franchisee would need to secure a lease for at least 10 years, inclusive of any renewal options, to meet Care Plus Medical Ucc's requirements.
This stipulation ensures that the franchisee has control of the location for the entire duration of the franchise agreement, which is a common practice in franchising to protect both the franchisee's investment and the franchisor's brand standards. Additionally, Care Plus Medical Ucc may require the franchisee to submit the proposed lease for written approval and to obtain the landlord's signature on a rider to the lease in a form required by Care Plus Medical Ucc.