What is the purpose of the Management Agreement between the Care Plus Medical Ucc franchisee and the Practice Entity?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
For the ownership, development, and operation of a Franchised Business under the Managed Operation Model, you must sign our standard Franchise Agreement and Managed Services Addendum to Franchise Agreement (attached to this Disclosure Document as Exhibit K). You must also enter into a management services agreement ("Management Agreement") with a Practice Entity that we approve to provide the Practice Entity and its Licensed Providers the Management Services and grant them a sublicense to use the Names and Marks at or through the Franchised Business. You, as the franchisee, will be responsible for construction and build-out of the Franchised Business for use by the Practice Entity and its Licensed Providers and ensuring that the Practice Entity and its Licensed Providers operate the Franchised Business in conformance with our System, specifications, and standards, but only the Licensed Providers are permitted to exercise professional or medical judgment and to offer medical products or services. You must hire an attorney to prepare the Management Agreement and to independently evaluate, review, and ensure that your Management Agreement complies with all applicable local, state, and federal laws. The Management Agreement must be approved by us before you open your Franchised Business, and must remain in effect for the entire term of your Franchise Agreement.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–11)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the Management Agreement is a crucial component of the Managed Operation Model. This agreement is established between the franchisee and a Practice Entity approved by Care Plus Medical Ucc. The Practice Entity consists of licensed providers who are authorized to offer medical products and services.
The primary purpose of the Management Agreement is to enable the Practice Entity and its Licensed Providers to receive Management Services. These services include administrative, marketing, technology, and facility-based support, but specifically exclude medical services, advice, or judgment. The agreement also grants the Practice Entity a sublicense to utilize Care Plus Medical Ucc's Names and Marks at the Franchised Business. The franchisee is responsible for the construction, build-out, and ensuring the Practice Entity operates in accordance with Care Plus Medical Ucc's standards. However, only the Licensed Providers are permitted to exercise medical judgment and offer medical products or services.
Prospective Care Plus Medical Ucc franchisees should note that they are required to hire an attorney to draft the Management Agreement. This legal counsel must independently evaluate and ensure the agreement complies with all applicable local, state, and federal laws. Furthermore, Care Plus Medical Ucc must approve the Management Agreement before the Franchised Business can open, and the agreement must remain in effect for the entire duration of the Franchise Agreement. This ensures that the operational and legal aspects of the franchise are properly managed and compliant with relevant regulations.