Does Care Plus Medical Ucc reserve the right to discontinue services that a franchisee must offer?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.4 Right to Discontinue Supplies Upon Default. While Franchisee is in default or breach of this Agreement, Care Plus Medical UCC may (i) require that Franchisee pay cash on delivery for products or services supplied by Care Plus Medical UCC, (ii) stop selling or providing any products and services to Franchisee, and/or (iii) request any third-party vendors to not sell or provide products or services to Franchisee.
No such action by Care Plus Medical UCC shall be a breach or constructive termination of this Agreement, change in competitive circumstances or similarly characterized, and Franchisee shall not be relieved of any obligations under this Agreement because of any such action.
Such rights of Care Plus Medical UCC are in addition to any other right or remedy available to Care Plus Medical UCC.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 33)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, Care Plus Medical Ucc has the right to discontinue providing services to a franchisee under specific circumstances. Specifically, if a franchisee is in default or breach of the Franchise Agreement, Care Plus Medical Ucc may stop selling or providing any products and services to the franchisee.
This action does not constitute a breach or constructive termination of the agreement, nor does it relieve the franchisee of their obligations under the agreement. Care Plus Medical Ucc retains these rights in addition to any other remedies available to them.
This clause means that if a Care Plus Medical Ucc franchisee fails to meet their obligations, the franchisor can cease providing essential services and supplies, potentially impacting the franchisee's ability to operate the business. It is important for prospective franchisees to understand the conditions that constitute a default or breach of contract to avoid such disruptions.