Does the non-compliance fee limit Care Plus Medical Ucc's other rights and remedies?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
are 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 fe
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the non-compliance fee does not limit Care Plus Medical Ucc's other rights and remedies. Care Plus Medical Ucc may charge a franchisee $500 for any instance of non-compliance with the System Standards or the Franchise Agreement (other than non-payment of a fee owed to Care Plus Medical UCC) which the franchisee fails to correct after 30 days' notice. Following this initial fee, Care Plus Medical Ucc may then charge the franchisee $250 per week until the non-compliance ceases.
The FDD states explicitly that this fee is designed to cover Care Plus Medical Ucc's internal personnel costs associated with addressing the non-compliance. It is not considered a penalty or a comprehensive estimate of all potential damages resulting from the franchisee's breach.
Importantly, the non-compliance fee is stated to be in addition to all of Care Plus Medical Ucc's other rights and remedies, including default and termination rights as outlined in Section 14.2 of the Franchise Agreement. This means that Care Plus Medical Ucc retains the ability to pursue other legal or contractual remedies available to them, even while charging the non-compliance fee.