Under what circumstances can 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 non-compliance fee may be charged to a franchisee for any instance of non-compliance with the System Standards or the Franchise Agreement. However, this fee is only applied if the franchisee fails to correct the non-compliance within 30 days after receiving notice from Care Plus Medical Ucc. This excludes non-payment of fees owed to Care Plus Medical Ucc, which are handled separately. The initial non-compliance fee is $500.
If the franchisee continues to be non-compliant after the initial fee is assessed, Care Plus Medical Ucc may charge an additional $250 per week until the franchisee rectifies the issue. This fee is designed to cover Care Plus Medical Ucc's internal costs related to addressing the non-compliance and is not considered a penalty or a comprehensive estimate of all potential damages resulting from the breach.
It is important to note that the non-compliance fee is in addition to any other rights and remedies that Care Plus Medical Ucc may pursue, including actions for default and termination of the Franchise Agreement as outlined in Section 14.2. This means that non-compliance can lead to multiple financial consequences and potential legal actions, making it crucial for franchisees to adhere to all System Standards and contractual obligations.