factual

What obligations survive the termination or expiration of the Care Plus Medical Ucc franchise agreement?

Care_Plus_Medical_Ucc Franchise · 2024 FDD

Answer from 2024 FDD Document

or

  • (xiv) Franchisee or any Owner is accused by any governmental authority or third party of any act, or if Franchisee or any Owner commits any act or series of acts, that in Care Plus Medical UCC's opinion is reasonably likely to materially and unfavorably affect the Care Plus Medical brand.
  • 14.3 Effect of Termination. Upon termination or expiration of this Agreement, all obligations that by their terms or by reasonable implication survive termination, including those pertaining to non-competition, confidentiality, indemnity, and dispute resolution, will remain in effect, and Franchisee must immediately:
    • (i) pay all amounts owed to Care Plus Medical UCC based on the operation of the Business through the effective date of termination or expiration;
    • (ii) return to Care Plus Medical UCC all copies of the Manual, Confidential Information and any and all other materials provided by Care Plus Medical UCC to Franchisee or created by a third party for Franchisee relating to the operation of the Business, and all items containing any Marks, copyrights, and other proprietary items; and delete all Confidential Information and proprietary materials from electronic devices;
    • (iii) notify the telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee's right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and authorize their transfer to Care Plus Medical UCC or any new franchisee as may be directed by Care Plus Medical UCC, and Franchisee hereby irrevocably appoints Care Plus Medical UCC, with full power of substitution, as its true and lawful attorney-in-fact, which appointment is coupled with an interest; to execute such directions and authorizations as may be necessary or appropriate to accomplish the foregoing; and
    • (iv) cease doing business under any of the Marks.

  • 14.4 Remove Identification. Within 30 days after termination or expiration, Franchisee shall at its own expense "de-identify" the Location so that it no longer contains the Marks, signage, or any trade dress of a Care Plus Medical business, to the reasonable satisfaction of Care Plus Medical UCC. Franchisee shall comply with any reasonable instructions and procedures of Care Plus Medical UCC for de-identification. If Franchisee fails to do so within 30 days after this Agreement expires or is terminated, Care Plus Medical UCC may enter the Location to remove the Marks and de-identify the Location. In this event, Care Plus Medical UCC will not be charged with trespass nor be accountable or required to pay for any assets removed or altered, or for any damage caused by Care Plus Medical UCC.

Source: Item 22 — CONTRACTS (FDD page 41)

What This Means (2024 FDD)

According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, several obligations remain in effect even after the franchise agreement terminates or expires. These include obligations related to non-competition, confidentiality, indemnity, and dispute resolution. Specifically, the franchisee must pay all outstanding amounts owed to Care Plus Medical Ucc that are based on the business's operation up to the termination or expiration date.

Additionally, upon termination or expiration of the Care Plus Medical Ucc franchise agreement, the franchisee is obligated to return all copies of the operations manual, confidential information, and any other materials provided by Care Plus Medical Ucc. This includes materials created by third parties for the franchisee related to the business's operation, as well as items containing trademarks, copyrights, and other proprietary items. The franchisee must also delete all confidential information and proprietary materials from electronic devices. The franchisee must also notify relevant entities of the termination or expiration of their right to use any numbers, addresses, domain names, locators, directories, and listings associated with any of the Care Plus Medical Ucc marks.

Furthermore, within 30 days after termination or expiration, the franchisee is responsible for de-identifying the location, removing all Care Plus Medical Ucc marks, signage, and trade dress to Care Plus Medical Ucc's satisfaction. If the franchisee fails to do so, Care Plus Medical Ucc has the right to enter the location to remove the marks and de-identify the location without being charged with trespass or being held accountable for any assets removed or damage caused. For two years post-termination, the franchisee is restricted from engaging with any competitor within five miles of the franchisee's territory or any other Care Plus Medical Ucc business operating at the time of termination.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.