Where is the 'Territory' for a Care Plus Medical Ucc franchise defined?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
are Plus Medical UCC may request. If Care Plus Medical UCC does not accept the proposed Location in writing within 30 days, then it is deemed rejected.
- (ii) When Care Plus Medical UCC accepts the Location, it will issue a Location Acceptance Letter in the form of Attachment 2 which states the Location and Territory. Care Plus Medical UCC shall determine the Territory in its good faith discretion, substantially in accordance with Item 12 of the Franchise Disclosure Document. If Care Plus Medical UCC fails to state the Territory in writing within 60 days after Franchisee opens the Business to the public, the Territory will be deemed to be the zip code where the location is operated from and the zip codes which immediately surround the location of the franchised business and together add up to 100,000 population.
- (iii) Care Plus Medical UCC's advice regarding or acceptance of a site is not a representation or warranty that the Business will be successful, and Care Plus Medical UCC has no liability to Franchisee with respect to the location of the Business.
- 6.2 Lease. In connection with any lease between Franchisee and the landlord of the Location: (i) if requested by Care Plus Medical UCC, Franchisee must submit the proposed lease to Care Plus Medical UCC for written approval, (ii) the term of the lease (including renewal terms) must be for a period of not less than the term of this Agreement, and (iii) Franchisee shall use commercially reasonable efforts to obtain the landlord's signature to a rider to the lease in the form required by Care Plus Medical UCC.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, the territory for a franchise is defined through a Location Acceptance Letter. After a franchisee proposes a location within their Development Area, Care Plus Medical Ucc will either accept or reject it within 30 days. If the location is accepted, Care Plus Medical Ucc will issue a Location Acceptance Letter, which specifies both the Location and the Territory. This determination is made at Care Plus Medical Ucc's discretion, following the guidelines in Item 12 of the FDD.
However, if Care Plus Medical Ucc fails to define the territory in writing within 60 days after the franchise opens, the territory will default to the zip code where the business is located, along with the surrounding zip codes, encompassing a total population of 100,000. This default definition provides a safety net for the franchisee should Care Plus Medical Ucc not formally define the territory promptly.
The Franchise Agreement also states that Care Plus Medical Ucc will not establish or license another business within the Territory that offers similar goods or services under the Care Plus Medical brand. However, Care Plus Medical Ucc retains the right to establish or license businesses outside the Territory, even if they are nearby or impact the franchisee's business. Additionally, Care Plus Medical Ucc can sell and license others to sell products and services within the Territory through other distribution channels, including the internet, which could create competition for the franchisee.