What is the process for curing a breach of the Care Plus Medical Ucc franchise agreement?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
- (c) A provision that permits a franchisor to terminate a franchise prior to the expiration of its term except for good cause. Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, the Michigan Franchise Investment Law stipulates specific conditions regarding the termination of a franchise agreement. If the franchise documents contain a provision that permits Care Plus Medical Ucc to terminate the franchise before the end of its term, it can only do so for "good cause." Good cause includes the franchisee's failure to comply with any lawful provision of the franchise agreement.
However, even if there is good cause, Care Plus Medical Ucc must provide the franchisee with written notice of the failure and a reasonable opportunity to cure it. The cure period does not have to be more than 30 days. This means that a franchisee in Michigan typically has at least 30 days to correct the issue after receiving notice from Care Plus Medical Ucc, unless the agreement specifies a shorter reasonable timeframe.
This protection is specific to Michigan under the Michigan Franchise Investment Law, as the FDD notes that the law prohibits certain unfair provisions that are sometimes found in franchise documents. If any of these provisions are in the Care Plus Medical Ucc franchise documents, they are considered void and cannot be enforced against the franchisee in Michigan.