What is the transfer fee for a Care Plus Medical Ucc franchise?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Costs of collection | Our actual costs | As incurred | Payable if we incur costs (including reasonable attorney fees) in attempting to collect amounts you owe to us. |
| Special support fee | Our then-current fee, plus our expenses. Currently, $600 per day. | On demand | If we provide in-person support to you in response to your request, we may charge this fee plus any out-of-pocket expenses (such as travel, lodging, and meals for employees providing onsite support). |
| Customer complaint resolution | Our expenses | On demand | We may take any action we deem appropriate to resolve a customer complaint about your business. If we respond to a customer complaint, we may require you to reimburse us for our expenses. |
| Records audit | Our actual cost | On demand | Payable only if (1) we audit you because you have failed to submit required reports or other non-compliance, or (2) the audit concludes that you under-reported gross sales by more than 3% for any 4-week period. |
| Special inspection fee | Currently $600, plus our out-of-pocket costs | On demand | Payable only if we conduct an inspection of your business because of a governmental report, customer complaint or other customer feedback, or your default or non-compliance with any system specification. |
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% | When billed | We may cure your non-compliance on your behalf (for example, if you do not have required insurance, we may purchase insurance for you), and you will owe our costs plus a 10% administrative fee. |
| Transfer fee | $10,000 plus any broker fees and other out-of-pocket costs we incur | When transfer occurs | Payable if you sell |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, a franchisee must pay a transfer fee of $10,000 plus any broker fees and other out-of-pocket costs the franchisor incurs if the franchisee sells their business. This fee is due when the transfer occurs.
Transfer fees are common in franchising and are intended to compensate the franchisor for the administrative and legal costs associated with reviewing and approving a transfer, as well as for the training and support provided to the new franchisee. The fee also ensures that the franchisor maintains control over who enters the franchise system.
For a prospective Care Plus Medical Ucc franchisee, it's important to factor this potential cost into the long-term financial planning for the business. If the franchisee anticipates selling the business in the future, they should be aware of this fee and its potential impact on the proceeds from the sale. Additionally, the franchisee should clarify with Care Plus Medical Ucc what specific 'broker fees and other out-of-pocket costs' might be incurred during a transfer to accurately estimate the total transfer-related expenses.