What actions can Devon Creek Franchisor take to resolve a customer dispute?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee fails to resolve a dispute with a customer, for any reason whatsoever, Franchisor, in its sole discretion and for the sole purpose of protecting the goodwill and reputation of the System and the Marks, may (but shall not be obligated to) investigate the matter and take such action as Franchisor may deem necessary or appropriate to resolve the dispute fairly and promptly, including, but not limited to, the issuance of a refund on Franchisee's behalf.
Within ten (10) days after receiving notice thereof, Franchisee shall reimburse Franchisor for any amounts refunded to a customer on Franchisee's behalf. Franchisee hereby authorizes Franchisor to take payment of refunded amounts, at Franchisor's option, through electronic funds transfer or ACH payment. Nothing contained in this Section or any other provision of this Agreement shall be construed to impose liability upon Franchisor to any third party for any action by or obligation of Franchisee.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the franchisor has the option to intervene in customer disputes to protect the brand's reputation. The franchisee is initially responsible for resolving customer disputes, and must provide Devon Creek with a written summary of the dispute within 24 hours of a request from the franchisor.
If the franchisee is unable to resolve the dispute, Devon Creek has the right, but not the obligation, to investigate and take action to resolve it. This may include issuing a refund to the customer on the franchisee's behalf.
If Devon Creek issues a refund to a customer, the franchisee is required to reimburse Devon Creek within ten days of receiving notice. Devon Creek is authorized to take payment for these refunds through electronic funds transfer or ACH payment. However, the FDD clarifies that Devon Creek is not liable to any third party for actions or obligations of the franchisee.