Does Care Plus Medical Ucc have the right to require franchisees to purchase real estate from them?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
We have the right to require you to purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating your business (1) either from us or our designee, or from suppliers approved by us, or (2) according to our specifications.
Specific Obligations
The following are our current specific obligations for purchases and leases:
- A. Real Estate. Your business location is subject to our approval and must meet our specifications. You must use reasonable efforts to have your landlord sign our form of Rider to Lease Agreement (attached to this disclosure document as Exhibit D).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, Care Plus Medical Ucc has the right to mandate that franchisees purchase or lease real estate from them, their designee, or suppliers they have approved. Alternatively, Care Plus Medical Ucc can require franchisees to adhere to their specifications regarding real estate. The business location is subject to Care Plus Medical Ucc's approval and must meet their specifications.
Care Plus Medical Ucc requires franchisees to use reasonable efforts to have their landlord sign Care Plus Medical Ucc's form of Rider to Lease Agreement, which is attached to the disclosure document as Exhibit D. This gives Care Plus Medical Ucc significant control over the franchisee's location and lease terms.
While Care Plus Medical Ucc has the right to require franchisees to purchase or lease real estate from a designated source, the document states that neither Care Plus Medical Ucc nor its affiliates are currently suppliers of goods or services that franchisees must purchase. However, Care Plus Medical Ucc reserves the right to become a supplier (or the sole supplier) of a good or service in the future. This means that while franchisees may not currently be required to purchase real estate directly from Care Plus Medical Ucc, this could change during the term of the franchise agreement.