Under what circumstances can Care Plus Medical Ucc terminate the franchise agreement for cause?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
ate your MUDA. |
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| g. “Cause” defined-- | FA: § 14.2 | Non-payment by you (10 days to cure); violate |
| curable defaults | ||
| MUDA: none | franchise agreement other than non-curable default (30 days to cure). | |
| h. “Cause” defined--non- | FA: Misrepresentation when applying to be a | |
| curable defaults | franchisee; knowingly submitting false information; bankruptcy; lose possession of your location; violation of law; violation of confidentiality; violation of non-compete; violation of transfer restrictions; slander or libel of us; refusal to cooperate with our business inspection; cease operations for more than 5 consecutive days; three defaults in 12 months; cross-termination; conviction of, or plea to a felony, or commission or accusation of an act that is reasonably likely to materially and unfavorably affect our brand; any other breach of franchise agreement which by its nature cannot be cured. MUDA: failure to meet development schedule; violation of franchise agreement or other agreement which gives us the right to terminate it. | |
| i. Franchisee’s obligations | Pay all amounts due; return Manual and | |
| on termination/non- | ||
| renewal | proprietary items; notify phone, internet, and other providers and transfer service; cease doing business; remove identification; purchase option by us. | |
| j. Assignment of | FA: § 15.1 | Unlimited Unlimited |
| agreement by franchisor | MUDA: § 7 | |
| k. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 33–37)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the company can terminate the franchise agreement for cause, subject to any applicable notice and cure opportunity. The grounds for termination with cause are divided into curable and non-curable defaults. For the standard Franchise Agreement (FA), curable defaults include non-payment, where the franchisee has 10 days to cure the default, and violating any other term of the franchise agreement, where the franchisee has 30 days to cure the default.
Non-curable defaults under the Franchise Agreement include misrepresentation when applying to be a franchisee, knowingly submitting false information, bankruptcy, losing possession of the location, violating laws, violating confidentiality or non-compete agreements, violating transfer restrictions, slandering or libeling Care Plus Medical Ucc, refusing to cooperate with business inspections, ceasing operations for more than 5 consecutive days, incurring three defaults within 12 months, cross-termination, conviction of or pleading to a felony, or committing or being accused of an act that could materially and unfavorably affect the Care Plus Medical Ucc brand, and any other breach of the franchise agreement that cannot be cured.
For franchisees who sign a Multi-Unit Development Agreement (MUDA), non-curable defaults also include failure to meet the development schedule and violating the franchise agreement or other agreement, which gives Care Plus Medical Ucc the right to terminate it. It is important to note that if a franchisee signs a Multi-Unit Development Agreement, termination of the MUDA does not give Care Plus Medical Ucc the right to terminate the franchise agreement. However, if the franchise agreement is terminated, Care Plus Medical Ucc has the right to terminate the MUDA.