Is Care Plus Medical Ucc required to establish a Marketing Fund?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.3 Marketing Fund. Care Plus Medical UCC may establish a Marketing Fund to promote the System on a local, regional, national, and/or international level.
If Care Plus Medical UCC has established a Marketing Fund:
- (a) Separate Account.
Care Plus Medical UCC shall hold the Marketing Fund Contributions from all franchisees in one or more bank accounts separate from Care Plus Medical UCC's other accounts.
- (b) Use.
Care Plus Medical UCC shall use the Marketing Fund only for marketing, advertising, and public relations materials, programs and campaigns (including at local, regional, national, and/or international level), and related overhead.
The foregoing includes such activities and expenses as Care Plus Medical UCC reasonably determines, and may include, without limitation: development and placement of advertising and promotions; sponsorships; contests and sweepstakes; development of décor, trade dress, Marks, and/or branding; development and maintenance of brand websites; social media; internet activities; e-commerce programs; search engine optimization; market research; public relations, media or agency costs; trade shows and other events; printing and mailing; and administrative and overhead expenses related to the Marketing Fund (including the compensation of Care Plus Medical UCC's employees working on marketing and for accounting, bookkeeping, reporting, legal and other expenses related to the Marketing Fund).
- (c) Discretion.
Franchisee agrees that expenditures from the Marketing Fund need not be proportionate to contributions made by Franchisee or provide any direct or indirect benefit to Franchisee.
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.
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 is not required to establish a Marketing Fund. Item 9.3 states that Care Plus Medical Ucc "may establish a Marketing Fund to promote the System on a local, regional, national, and/or international level." This indicates that establishing a Marketing Fund is optional for Care Plus Medical Ucc.
If Care Plus Medical Ucc establishes a Marketing Fund, it must hold the contributions from all franchisees in a separate bank account. The funds can only be used for marketing, advertising, and public relations activities. These activities may include developing advertising and promotions, sponsorships, maintaining brand websites, social media, internet activities, market research, and administrative expenses related to the Marketing Fund.
Even if a Marketing Fund is established, Care Plus Medical Ucc has sole discretion over how the funds are spent, and expenditures do not need to be proportionate to individual franchisee contributions. Additionally, franchisees are required to spend at least 2% of their gross sales each month on local marketing efforts for their business, and must contribute to a Market Cooperative if one exists in their area, with contributions ranging from 1% to 5% of gross sales.