Under what circumstances can Care Plus Medical Ucc unilaterally terminate a franchise agreement?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
reement and fails to cure or to make substantial progress toward curing the violation within 30 days after receiving written notice from Franchisee detailing the alleged default. Termination by Franchisee is effective 10 days after Care Plus Medical UCC receives written notice of termination.
14.2 Termination by Care Plus Medical UCC.
(a) Subject to 10-Day Cure Period. Care Plus Medical UCC may terminate this Agreement if Franchisee does not make any payment to Care Plus Medical UCC when due, or if Franchisee does not have sufficient funds in its account when Care Plus Medical UCC attempts an
electronic funds withdrawal, and Franchisee fails to cure such non-payment within 10 days after Care Plus Medical UCC gives notice to Franchisee of such breach.
- (b) Subject to 30-Day Cure Period. If Franchisee breaches this Agreement in any manner not described in subsection (a) or (c), and Franchisee fails to cure such breach to Care Plus Medical UCC's satisfaction within 30 days after Care Plus Medical UCC gives notice to Franchisee of such breach, then Care Plus Medical UCC may terminate this Agreement.
- (c) Without Cure Period. Care Plus Medical UCC may terminate this Agreement by giving notice to Franchisee, without opportunity to cure, if any of the following occur:
- (i) Franchisee misrepresented or omitted material facts when applying to be a franchisee, or breaches any representation in this Agreement;
- (ii) Franchisee knowingly submits any false report or knowingly provides any other false information to Care Plus Medical UCC;
- (iii) a receiver or trustee for the Business or all or substantially all of Franchisee's property is appointed by any court, or Franchisee makes a general assignment for the benefit of Franchisee's creditors, or Franchisee is unable to pay its debts as they become due, or a levy or execution is made against the Business, or an attachment or lien remains on the Business for 30 days unless the attachment or lien is being duly contested in good faith by Franchisee, or a petition in bankruptcy is filed by Franchisee, or such a petition is filed against or consented to by Franchisee and the petition is not dismissed within 45 days, or Franchisee is adjudicated as bankrupt;
- (iv) Franchisee fails to open for business by the date specified on the Summary Page;
- (v) Franchisee loses possession of the Location;
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, Care Plus Medical Ucc can terminate the franchise agreement under several circumstances, with and without an opportunity for the franchisee to cure the default.
Care Plus Medical Ucc may terminate the agreement if the franchisee fails to make payments when due, including instances of insufficient funds for electronic withdrawals, and fails to rectify the non-payment within 10 days of receiving notice. Additionally, if a franchisee breaches the agreement in any way not specifically mentioned elsewhere, and fails to correct the breach to Care Plus Medical Ucc's satisfaction within 30 days after receiving notice, Care Plus Medical Ucc reserves the right to terminate the agreement.
Furthermore, Care Plus Medical Ucc can terminate the agreement immediately, without allowing the franchisee an opportunity to cure, under specific conditions. These include misrepresentation or omission of material facts during the application process, submission of false reports or information, endangering health or safety and failing to rectify it within 48 hours, receiving two or more default notices within a 12-month period, termination of any other agreement with the franchisee (or affiliate) due to breach, a felony charge or conviction of the franchisee or any owner, or any act by the franchisee or owner that could negatively impact the Care Plus Medical brand.
These termination clauses are typical in franchise agreements to protect the franchisor's brand and system standards. Prospective franchisees should carefully review these conditions to understand their obligations and the potential consequences of non-compliance. Franchisees should also be aware of the implications of termination, including the payment of liquidated damages and adherence to non-compete clauses.