What are the terms under which Care Plus Medical Ucc can exercise its right of first refusal?
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, before a franchisee engages in a transfer of their franchise, Care Plus Medical Ucc has a right of first refusal, except under specific conditions such as a transfer for convenience of ownership, to a co-owner, or to a spouse, sibling, or child of an owner. To initiate this process, the franchisee must provide Care Plus Medical Ucc with a copy of the terms and conditions of the proposed transfer.
Care Plus Medical Ucc then has 30 days from the date of receiving this information to exercise its right to purchase the assets subject to the proposed transfer. This is done by providing notice to the franchisee. The purchase will be for the same price and under the same terms and conditions as the proposed transfer. However, Care Plus Medical Ucc has the option to substitute cash for any other form of payment.
If Care Plus Medical Ucc decides not to exercise its right of first refusal within the 30-day period, the franchisee is then permitted to proceed with the transfer, provided that all other terms and conditions outlined in the franchise agreement are met. This ensures that Care Plus Medical Ucc retains control over who enters their franchise system while also allowing franchisees the opportunity to transfer their business if Care Plus Medical Ucc declines to purchase it.