What is the status of the Care Plus Medical Ucc franchise offering in California?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
chise agreement is in effect and where the parties are represented by independent counsel.
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Item 23 RECEIPTS
Detachable documents acknowledging your receipt of this disclosure document are attached as the last two pages of this disclosure document.
EXHIBIT A
STATE ADDENDA TO DISCLOSURE DOCUMENT
CALIFORNIA ADDENDUM TO DISCLOSURE DOCUMENT
The registration of this franchise does not constitute approval, recommendation, or endorsement by the commissioner by the California Department of Financial Protection and Innovation.
In registering this franchise, the California Department of Financial Protection and Innovation has not reviewed, and makes no statements concerning, the franchisor's compliance with state and federal licensing and regulatory requirements relating to the practice of medicine. You should consult with your attorney concerning these laws, regulations, and ordinances that may affect the operation of your business. If the California Medical Board, or any other agency overseeing the practice of medicine in this state, determines that the operation of the franchise fails to comply with state law, the franchisor may be required to cease operations of the franchised business in California. This may result in the termination of your franchise and loss of your investment.
California's Franchise Investment Law (Corporations Code sections 31512 and 31512.1) states that any provision of a franchise agreement or related document requir3en the franchisee to waive specific provisions of the law is contrary to public policy and is void and unenforceable. The law also prohibits a franchisor from disclaiming or denying (i) representations it, its employees, or its agents make to you, (ii) your ability to rely on any representations it makes to you, or (iii) any violations of the law.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
California limited liability companies Code, Section 31125 requires the franchisor to give the franchisee a disclosure document, approved by the Department of Financial Protection and Innovation, 14 days prior to the execution of an agreement or the solicitation of a proposed material modification of an existing agreement.
The California Franchise Investment Law requires that a copy of all proposed agreements relating to the sale of the franchise be delivered together with the offering circular 14 days prior to execution of agreement.
Our website, www.CPMedCenters.com, has not been reviewed or approved by the California Department of Financial Protection and Innovation.
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, the California Department of Financial Protection and Innovation has registered the Care Plus Medical Ucc franchise. However, the registration does not imply endorsement, recommendation, or approval by the commissioner.
The California Department of Financial Protection and Innovation has not reviewed Care Plus Medical Ucc's compliance with state and federal licensing and regulatory requirements for medical practices. Prospective franchisees are advised to consult with an attorney regarding these laws, regulations, and ordinances that may affect their business operations. If any agency overseeing medical practice in California determines that the franchise's operation violates state law, Care Plus Medical Ucc may be required to cease operations, potentially leading to franchise termination and investment loss for the franchisee.
California's Franchise Investment Law stipulates that any provision requiring a franchisee to waive specific legal provisions is against public policy and unenforceable. Care Plus Medical Ucc is prohibited from disclaiming or denying representations made to franchisees, their ability to rely on such representations, or any violations of the law. Franchisees cannot waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Care Plus Medical Ucc or its representatives. The FDD also notes that California law limits the interest rate for late fees to a maximum of 10%.
Furthermore, the Department has determined that Care Plus Medical Ucc has not demonstrated adequate capitalization and/or that they must rely on franchise fees to fund their operations. The Commissioner has imposed a fee deferral condition, which requires that Care Plus Medical Ucc defers the collection of all initial fees from California franchisees until they have completed all of their pre-opening obligations and the franchisee is open for business. For California franchisees who sign a development agreement, the payment of the development and initial fees attributable to a specific unit in your development schedule is deferred until that unit is open.