Is Care Plus Medical Ucc obligated to approve a franchisee's request for relocation?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
Care Plus Medical UCC shall maintain a website for Care Plus Medical, which will include Franchisee's location (or territory) and telephone number.
ARTICLE 6. LOCATION, DEVELOPMENT, AND OPENING
6.1 Determining Location and Territory.
- (i) Franchisee shall find a potential Location within the Development Area described on the Summary Page. Franchisee shall submit its proposed Location to Care Plus Medical UCC for acceptance, with all related information Care Plus Medical UCC may request. If Care Plus Medical UCC does not accept the proposed Location in writing within 30 days, then it is deemed rejected.
- (ii) When Care Plus Medical UCC accepts the Location, it will issue a Location Acceptance Letter in the form of Attachment 2 which states the Location and Territory. Care Plus Medical UCC shall determine the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If Care Plus Medical UCC fails to state the Territory in writing within 60 days after Franchisee opens the Business to the public, the Territory will be deemed to be the zip code where the location is operated from and the zip codes which immediately surround the location of the franchised business and together add up to 100,000 population.
- (iii) Care Plus Medical UCC's advice regarding or acceptance of a site is not a representation or warranty that the Business will be successful, and Care Plus Medical UCC has no liability to Franchisee with respect to the location of the Business.
- 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. If required by Care Plus Medical UCC, Franchisee shall engage the services of an architect licensed in the jurisdiction of the Location. Franchisee shall not begin any construction or remodeling work without first obtaining Care Plus Medical UCC's approval of Franchisee's plans. Care Plus Medical UCC may, but is not required to, inspect Franchisee's construction or remodeling progress at any reasonable time.
Source: Item 12 — TERRITORY (FDD pages 28–30)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, Care Plus Medical UCC's approval process focuses on the initial location selection rather than explicitly addressing relocation requests. The FDD states that the franchisee is responsible for finding a potential location within the designated development area and submitting it to Care Plus Medical UCC for acceptance. Care Plus Medical UCC has 30 days to either accept or reject the proposed location in writing. If Care Plus Medical UCC does not respond within 30 days, the location is considered rejected.
Once Care Plus Medical UCC accepts a location, they will issue a Location Acceptance Letter, which specifies both the location and the territory granted to the franchisee. Care Plus Medical UCC determines the territory based on its discretion, aligning with Item 12 of the Franchise Disclosure Document. If Care Plus Medical UCC fails to define the territory in writing within 60 days after the business opens, the territory defaults to the zip code of the business location and the surrounding zip codes, encompassing a total population of 100,000.
The agreement emphasizes that Care Plus Medical UCC's advice or acceptance of a site does not guarantee the business's success, and Care Plus Medical UCC assumes no liability regarding the location's performance. The franchisee is obligated to operate the Care Plus Medical business at the approved location for the entire term of the agreement. The FDD does not explicitly detail the process or conditions under which a franchisee can request or be approved for relocation during the franchise term. Therefore, a prospective franchisee should seek clarification from Care Plus Medical UCC regarding the possibility and procedures for relocation during the franchise agreement.