Under what circumstances will Care Plus Medical Ucc charge a Non-Compliance Fee?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
are Plus Medical UCC may charge its thencurrent training fee. As of the date of this Agreement, the training fee is $450 per day.
- 4.5 Non-Compliance Fee. Care Plus Medical UCC may charge Franchisee $500 for any instance of non-compliance with the System Standards or this Agreement (other than Franchisee's non-payment of a fee owed to Care Plus Medical UCC) which Franchisee fails to cure after 30 days' notice. Thereafter, Care Plus Medical UCC may charge Franchisee $250 per week until Franchisee ceases such non-compliance. This fee is a reasonable estimate of Care Plus Medical UCC's internal cost of personnel time attributable to addressing the non-compliance, and it is not a penalty or estimate of all damages arising from Franchisee's breach. The non-compliance fe
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, a franchisee may be charged a Non-Compliance Fee under specific circumstances related to adherence to the System Standards and the Franchise Agreement. Care Plus Medical Ucc may charge a franchisee $500 for any instance of non-compliance with the System Standards or the Franchise Agreement. However, this fee is not applied to the non-payment of fees owed to Care Plus Medical UCC.
The Non-Compliance Fee is only charged if the franchisee fails to correct the non-compliance within 30 days after receiving notice of the issue. If the non-compliance continues beyond this initial 30-day period, Care Plus Medical UCC may then charge the franchisee $250 per week until the non-compliance is resolved.
The FDD specifies that these fees are considered a reasonable estimate of Care Plus Medical Ucc's internal costs related to addressing the non-compliance, particularly the personnel time involved. It is explicitly stated that the fee is not a penalty or an estimate of all potential damages resulting from the franchisee's breach. Furthermore, the non-compliance fee is in addition to any other rights and remedies that Care Plus Medical Ucc may have, including actions related to default and termination of the agreement.