Under what circumstances might Care Plus Medical Ucc approve the relocation of a franchisee's business?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall develop, open and operate a Care Plus Medical business at the Location for the entire term of this Agreement.
- 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 franchise agreement and any related documents, which form may contain materially different provisions than this Agreement (provided, however, that the proposed assignee will not be required to pay an initial franchise fee);
- (v) all owners of the proposed assignee provide a guaranty in accordance with Section 2.5;
Source: Item 12 — TERRITORY (FDD pages 28–30)
What This Means (2024 FDD)
Based on the 2024 Care Plus Medical UCC Franchise Disclosure Document, the document does not explicitly detail the circumstances under which Care Plus Medical UCC might approve the relocation of a franchisee's business. However, the FDD does state that franchisees must operate their Care Plus Medical business at the location specified for the entire term of the agreement.
While the FDD does not outline specific relocation terms, it does discuss the conditions for transferring the franchise to another party. These conditions include paying a transfer fee of $10,000 plus any broker fees and out-of-pocket costs incurred by Care Plus Medical UCC, ensuring the proposed assignee meets Care Plus Medical UCC's standards for new franchisees, and securing a guaranty from all owners of the proposed assignee. The assignee must also execute Care Plus Medical UCC's current franchise agreement, which may contain materially different provisions.
Given the lack of explicit relocation terms, prospective franchisees should directly inquire with Care Plus Medical UCC about their policy on relocations. Specifically, they should ask about the conditions under which a relocation might be considered, any associated fees or costs, and the criteria used to evaluate a proposed new location. Understanding these factors is crucial for franchisees who may need to move their business in the future due to unforeseen circumstances.