Does Care Plus Medical Ucc have a right of first refusal before a franchisee engages in a transfer?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.5 Care Plus Medical UCC's Right of First Refusal. Before Franchisee (or any Owner) engages in a Transfer (except under Section 15.3, to a co-Owner, or to a spouse, sibling, or child of an Owner), Care Plus Medical UCC will have a right of first refusal, as set forth in this Section.
Franchisee (or its Owners) shall provide to Care Plus Medical UCC a copy of the terms and conditions of any Transfer.
For a period of 30 days from the date of Care Plus Medical UCC's receipt of such copy, Care Plus Medical UCC will have the right, exercisable by notice to Franchisee, to purchase the assets subject of the proposed Transfer for the same price and on the same terms and conditions (except that Care Plus Medical UCC may substitute cash for any other form of payment).
If Care Plus Medical UCC does not exercise its right of first refusal, Franchisee may proceed with the Transfer, subject to the other terms and conditions of this Article.
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 does have a right of first refusal before a franchisee engages in a transfer. Before a franchisee or any owner engages in a transfer, with some exceptions, Care Plus Medical Ucc has the right of first refusal.
The franchisee must provide Care Plus Medical Ucc with a copy of the terms and conditions of any proposed transfer. Care Plus Medical Ucc then has 30 days from the date of receiving the copy to exercise its right to purchase the assets under the same terms and conditions, but with the option to substitute cash for other forms of payment.
If Care Plus Medical Ucc chooses not to exercise its right of first refusal, the franchisee can proceed with the transfer, provided they meet all other terms and conditions outlined in the franchise agreement. This right of first refusal does not apply to transfers under Section 15.3, to a co-owner, or to a spouse, sibling, or child of an owner.