Within the protected territory, what is Care Plus Medical UCC prohibited from doing?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.2 Protected Territory. Care Plus Medical UCC shall not establish, nor license the establishment of, another business within the Territory selling the same or similar goods or services under the same or similar trademarks or service marks as a Care Plus Medical business.
Care Plus Medical UCC retains the right to:
(i) establish and license others to establish and operate Care Plus Medical businesses outside the Territory, notwithstanding their proximity to the Territory or their impact on the Business;
(ii) operate and license others to operate businesses anywhere that do not operate under the Care Plus Medical brand name; and
(iii) sell and license othersto sell products and services in the Territory through channels of distribution (including the internet) other than Care Plus Medical outlets.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, within the franchisee's protected territory, Care Plus Medical Ucc is restricted from establishing or licensing another business that sells the same or similar goods or services under the same or similar trademarks or service marks as a Care Plus Medical Ucc business. This provision aims to provide the franchisee with a degree of exclusivity within their designated territory. However, it is important to note the exceptions to this exclusivity.
Care Plus Medical Ucc retains the right to establish and license other Care Plus Medical Ucc businesses outside the franchisee's territory, regardless of their proximity or impact on the franchisee's business. They can also operate or license businesses anywhere that do not use the Care Plus Medical Ucc brand name. Furthermore, Care Plus Medical Ucc can sell and license others to sell products and services within the franchisee's territory through alternative channels of distribution, including the internet, which could impact the franchisee's market share.
This means that while a franchisee has some territorial protection against direct competition from other Care Plus Medical Ucc branded outlets, Care Plus Medical Ucc can still operate or license other businesses nearby under different brand names, and can sell products/services directly to customers in the franchisee's territory via online channels. A prospective franchisee should carefully consider these exceptions and evaluate the potential impact of these activities on their business before investing in a Care Plus Medical Ucc franchise.