Must the proposed assignee execute Care Plus Medical Ucc's current franchise agreement?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
LE 15. TRANSFERS**
- 15.1 By Care Plus Medical UCC. Care Plus Medical UCC may transfer or assign this Agreement, or any of its rights or obligations under this Agreement, to any person or entity, and Care Plus Medical UCC may undergo a change in ownership and/or control, without the consent of Franchisee.
- 15.2 By Franchisee. Franchisee acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee and that Care Plus Medical UCC entered into this Agreement in reliance on Franchisee's business skill, financial capacity, personal character, experience, and business ability. Accordingly, Franchisee shall not conduct or undergo a Transfer without providing Care Plus Medical UCC at least 60 days prior notice of the proposed Transfer, and without obtaining Care Plus Medical UCC's consent.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, a proposed assignee may be required to execute the then-current form of the franchise agreement. Specifically, as a condition of transfer, Care Plus Medical Ucc may require that "the proposed assignee executes Care Plus Medical UCC's then-current form of franchise agreement and any related documents."
This new agreement executed by the assignee "may contain materially different provisions than this Agreement." However, the assignee is not required to pay an initial franchise fee. This condition is one of several that Care Plus Medical Ucc may impose when granting consent for a transfer.
This requirement means that a potential buyer of an existing Care Plus Medical Ucc franchise may have to agree to terms that are different from the original franchise agreement. These terms could include higher fees, different operational standards, or other changes that could affect the profitability and operations of the franchise. It is important for prospective buyers to carefully review the current franchise agreement and understand any potential changes before completing the purchase.