Is Care Plus Medical UCC required to contribute to the Marketing Fund?

According to the 2024 Care Plus Medical UCC Franchise Disclosure Document, Care Plus Medical UCC is not obligated to contribute to the Marketing Fund. While Care Plus Medical UCC may establish a Marketing Fund to promote the system, it is not required to have all Care Plus Medical businesses, whether owned by franchisees, Care Plus Medical UCC, or its affiliates, contribute to the fund. Furthermore, even if other Care Plus Medical businesses contribute, they are not obligated to contribute the same amount or at the same rate as the franchisee. This means that the financial burden of the Marketing Fund could potentially fall primarily on the franchisees.

This arrangement gives Care Plus Medical UCC significant discretion over the Marketing Fund. The document states that the Marketing Fund will be spent at Care Plus Medical UCC's sole discretion, and Care Plus Medical UCC has no fiduciary duty with regard to the Marketing Fund. This means Care Plus Medical UCC has broad authority in deciding how the marketing funds are used, without a legal obligation to prioritize the franchisees' direct benefit. Franchisees should recognize that expenditures from the Marketing Fund do not need to be proportionate to their contributions or provide any direct or indirect benefit to them.

In addition to the Marketing Fund, franchisees may also be required to participate in a Market Cooperative, where the contribution is determined by a majority vote of the cooperative members, but not less than 1% and not more than 5% of Gross Sales. However, Care Plus Medical UCC retains the right to enforce the obligations of franchisees to contribute to the Market Cooperative. Prospective franchisees should consider the potential financial implications of these marketing contributions and the level of control Care Plus Medical UCC maintains over these funds.