What are the requirements for the Principal Executive of a Care Plus Medical Ucc franchise?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
erest in Franchisee. If any of this information changes, Franchisee shall notify Franchisor within 10 days.
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee. The Principal Executive must have at least 10% ownership interest in Franchisee. The Principal Executive does not have to serve as a day-today general manager of the Business, but the Principal Executive must devote substantial time and attention to the Business. If the Principal Executive dies, becomes incapacitated, transfers his/her interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to Care Plus Medical UCC's reasonable approval.
- 2.5 Guaranty. If Franchisee is an entity, then Franchisee shall have each Owner sign a personal guaranty of Franchisee's obligations to Care Plus Medical UCC, in the form of Attachment 3.
- 2.6 No Conflict. Franchisee represents to Care Plus Medical UCC that Franchisee and each of its Owners (i) are not violating any agreement (including any confidentiality or non-competition covenant) by entering into or performing under this Agreement, (ii) are not a direct or indirect owner of any Competitor, and (iii) are not listed or "blocked" in connection with, and are not in violation under, any anti-terrorism law, regulation, or executive order.
ARTICLE 3. TERM
- 3.1 Term. This Agreement commences on the Effective Date and continues for 10 years.
- 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;
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 32–33)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the Principal Executive is the person primarily responsible for the business with decision-making authority. This individual must be designated on the Summary Page of the franchise agreement. The Principal Executive is not required to be the day-to-day general manager but must devote substantial time and attention to the business. They also must have at least a 10% ownership interest in the franchise.
If the designated Principal Executive dies, becomes incapacitated, transfers their interest, or otherwise ceases to be the executive primarily responsible, the franchisee must promptly designate a new Principal Executive, subject to Care Plus Medical Ucc's approval. The Principal Executive must complete Care Plus Medical Ucc's training program for new franchisees to Care Plus Medical Ucc's satisfaction at least four weeks before opening the business.
The Principal Executive is also expected to attend all in-person and remote meetings required by Care Plus Medical Ucc, including national or regional brand conventions, and cannot miss more than three consecutive required meetings. Care Plus Medical Ucc may also require the Principal Executive and/or other employees to complete additional training programs at any time, potentially incurring reasonable fees and travel expenses for the franchisee.