When are non-compliance cure costs and fees due to Care Plus Medical Ucc?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% | When billed | We may cure your non-compliance on your behalf (for example, if you do not have required insurance, we may purchase insurance for you), and you will owe our costs plus a 10% administrative fee. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, non-compliance cure costs and fees are due 'when billed.' These costs cover situations where Care Plus Medical Ucc steps in to correct a franchisee's non-compliance issues on their behalf.
For example, if a franchisee fails to maintain the required insurance coverage, Care Plus Medical Ucc may purchase the necessary insurance and then bill the franchisee for the cost. The amount due includes Care Plus Medical Ucc's out-of-pocket expenses, an allocation of internal costs, and an additional 10% administrative fee. This means a franchisee could face unexpected expenses if they fail to meet the brand's standards or requirements, and they will need to pay these costs promptly upon receiving the bill from Care Plus Medical Ucc.
It is important for prospective franchisees to understand what constitutes non-compliance and to maintain open communication with Care Plus Medical Ucc to avoid these fees. Franchisees should also budget for the possibility of incurring these costs, as failure to pay could lead to further penalties or even termination of the franchise agreement.