Can Care Plus Medical Ucc require a remodel as a condition of renewal of the franchise term?
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, Care Plus Medical Ucc can require a remodel as a condition of renewal of the franchise term. To renew the franchise agreement, the franchisee must notify Care Plus Medical Ucc of their election to renew between 90 and 180 days prior to the end of the term. The franchisee must be in compliance with the existing agreement and all other agreements with Care Plus Medical Ucc at the time of election and renewal.
As a condition of renewal, the franchisee must make or agree to make renovations and changes to the business, including a remodel if applicable, to conform to the then-current System Standards. The franchisee must also execute Care Plus Medical Ucc's then-current standard form of franchise agreement and related documents, which may be materially different, and execute a general release of any and all claims against Care Plus Medical Ucc.
This means that a prospective franchisee should be prepared to invest additional capital to meet the updated System Standards if they choose to renew their franchise agreement. The new franchise agreement may also include higher or different fees than the original agreement. The franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in the agreement.