Does Care Plus Medical Ucc require approval for any transfer by the franchisee?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| k. “Transfer” by | FA: Article 1 | For you (or any owner of your business) to |
| franchisee - defined | ||
| MUDA: Background | voluntarily or involuntarily transfer, sell, or | |
| Statement | dispose of, in any single or series of transactions, (i) substantially all of the assets of the business, (ii) the franchise agreement, (iii) any direct or indirect ownership interest in the business, or (iv) control of the business. | |
| l. Franchisor’s approval of | FA: § 15.2 | No transfers without our approval. No transfers without our approval. |
| transfer by franchisee | MUDA: § 7 | |
| n. Franchisor’s right of | If you want to transfer your business (other | |
| first refusal to acquire | ||
| franchisee’s business | than to your co-owner or your spouse, sibling, or child), we have a right of first refusal. | |
| p. Death or disability of | If you die or become incapacitated, a new | |
| franchisee | principal executive acceptable to us must be designated to operate the business, and your executor must transfer the business to an approved new owner within nine months. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 33–37)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the franchisee needs franchisor approval to transfer the franchise. The FDD specifies that 'no transfers' can occur without Care Plus Medical Ucc's approval.
Specifically, if a franchisee wants to transfer, sell, or dispose of the business assets, the franchise agreement, any ownership interest, or control of the business, they must get Care Plus Medical Ucc's approval. This applies whether the transfer is voluntary or involuntary and includes single transactions or a series of transactions.
Additionally, Care Plus Medical Ucc has the right of first refusal if a franchisee wants to transfer their business to someone other than a co-owner, spouse, sibling, or child. If the franchisee dies or becomes incapacitated, the executor must transfer the business to a new owner approved by Care Plus Medical Ucc within nine months, with a principal executive acceptable to Care Plus Medical Ucc designated to operate the business in the interim.