What is the role of the 'Principal Executive' for 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;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with Care Plus Medical UCC (or any of its affiliates) at the time of election and at the time of renewal;
Source: Item 22 — CONTRACTS (FDD page 41)
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 Care Plus Medical UCC business and possesses decision-making authority on behalf of the franchisee. This individual must be identified on the Summary Page of the Franchise Agreement and must maintain at least a 10% ownership interest in the franchise.
While the Principal Executive is not required to manage the day-to-day operations, they must dedicate substantial time and attention to the business. This suggests that Care Plus Medical UCC expects the Principal Executive to be actively involved in overseeing the franchise's performance and strategic direction, even if they delegate daily management tasks to a general manager. The FDD also states that the Business must at all times be under the on-site supervision of the Principal Executive or a general manager who has completed Care Plus Medical UCC's training program.
Furthermore, Care Plus Medical UCC requires the Principal Executive to complete the initial training program for new franchisees at least four weeks before opening the Business. Care Plus Medical UCC may also require that the Principal Executive complete additional training programs at any time. 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. If the designated Principal Executive leaves the company, a new one must be appointed, subject to Care Plus Medical UCC's approval.