What is the transfer fee that Care Plus Medical Ucc charges for a franchise transfer?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
LE 15. TRANSFERS**
- 15.1 By Care Plus Medical UCC. Care Plus Medical UCC may transfer or assign this Agreement, or any of its rights or obligations under this Agreement, to any person or entity, and Care Plus Medical UCC may undergo a change in ownership and/or control, without the consent of Franchisee.
- 15.2 By Franchisee. Franchisee acknowledges that the rights and duties set forth in this Agreement are personal to Franchisee and that Care Plus Medical UCC entered into this Agreement in reliance on Franchisee's business skill, financial capacity, personal character, experience, and business ability. Accordingly, Franchisee shall not conduct or undergo a Transfer without providing Care Plus Medical UCC at least 60 days prior notice of the proposed Transfer, and without obtaining Care Plus Medical UCC's consent. In granting any such consent, Care Plus Medical UCC may impose conditions, including, without limitation, the following:
- (i) Care Plus Medical UCC receives a transfer fee equal to $10,000 plus any broker fees and other out-of-pocket costs incurred by Care Plus Medical UCC;
- (ii) the proposed assignee and its owners have completed Care Plus Medical UCC's franchise application processes, meet Care Plus Medical UCC's then-applicable standards for new franchisees, and have been approved by Care Plus Medical UCC as franchisees;
- (iii) the proposed assignee is not a Competitor;
- (iv) the proposed assignee executes Care Plus Medical UCC's then-current form of franch
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, if a franchisee seeks to transfer their franchise, Care Plus Medical Ucc may require a transfer fee. This fee is equal to $10,000, in addition to any broker fees and other out-of-pocket costs incurred by Care Plus Medical Ucc during the transfer process.
This means that a franchisee looking to sell their Care Plus Medical Ucc franchise must be prepared to pay this transfer fee to the franchisor. The fee covers Care Plus Medical Ucc's costs associated with reviewing and approving the transfer, including assessing the potential new franchisee.
It is important to note that the transfer is not guaranteed simply by paying the fee. Care Plus Medical Ucc also requires that the proposed assignee (the buyer) meets their then-applicable standards for new franchisees and is approved by them. The proposed assignee must also not be a competitor and must execute Care Plus Medical Ucc's current franchise agreement, which may have different terms than the original agreement. Meeting these conditions is crucial for the transfer to be approved.