Can Care Plus Medical Ucc require a remodel of the business as a condition of renewal?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.2 Successor Agreement. When the term of this Agreement expires, Franchisee may enter into a successor agreement subject to the following conditions prior to each expiration:
- (i) Franchisee notifies Care Plus Medical UCC of the election to renew between 90 and 180 days prior to the end of the term;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with Care Plus Medical UCC (or any of its affiliates) at the time of election and at the time of renewal;
- (iii) Franchisee has made or agrees to make (within a period of time acceptable to Care Plus Medical UCC) renovations and changes to the Business as Care Plus Medical UCC requires (including a Remodel, if applicable) to conform to the then-current System Standards;
- (iv) Franchisee and its Owners execute Care Plus Medical UCC's then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that Franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in this Section;
- (v) Franchisee and each Owner executes a general release (on Care Plus Medical UCC's then-standard form) of any and all claims against Care Plus Medical UCC, its affiliates, and their respective owners, officers, directors, agents and employees.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, a remodel of the location can be required as a condition of renewal. Specifically, to renew the franchise agreement at the end of its 10-year term, the franchisee must make renovations and changes to the business as Care Plus Medical UCC requires. This includes completing a remodel, if applicable, to conform to the then-current System Standards.
This requirement means that franchisees need to be prepared for potential renovation costs when considering renewal. The franchisee is responsible for ensuring the business aligns with the latest System Standards, which may involve significant financial investment. The FDD does not specify the potential cost of these renovations, so it is important for a prospective franchisee to discuss potential remodel costs with Care Plus Medical Ucc.
It is important to note that the new franchise agreement may also contain terms that are materially different from the original agreement, including higher or different fees. Additionally, the franchisee will be required to execute a general release of any and all claims against Care Plus Medical UCC and its affiliates. Therefore, franchisees should carefully consider all these factors before deciding to renew their franchise agreement.