Does the Devon Creek agreement state that the liquidated damages payable by the franchisee are in addition to any other remedies available to the Franchisor?

According to the 2024 Devon Creek Franchise Disclosure Document, the liquidated damages payable by the franchisee in the event of termination due to default are in addition to all other amounts payable under the agreement. Specifically, the agreement states that these liquidated damages do not affect Devon Creek's right to obtain injunctive relief and other remedies available through other provisions of the agreement. This means that Devon Creek is entitled to pursue all available legal and equitable remedies, in addition to collecting liquidated damages.

For a prospective Devon Creek franchisee, this clause has significant implications. If the franchise agreement is terminated due to the franchisee's default, Devon Creek can pursue multiple avenues of financial recovery. First, Devon Creek can collect a lump sum payment calculated based on the average weekly Royalty Fee and Brand Fund contribution over the 12 months prior to termination, multiplied by either 36 months or the remaining months in the agreement term, whichever is less. Second, Devon Creek retains the right to seek injunctive relief, which could include court orders preventing the franchisee from operating a similar business in violation of non-compete clauses.

This provision is relatively standard in franchising, as it aims to protect the franchisor's interests beyond the immediate financial loss. The ability to pursue injunctive relief ensures that the franchisee cannot continue to use Devon Creek's trademarks, trade secrets, or operational methods after termination. The liquidated damages provision offers a degree of certainty in quantifying some of the franchisor's losses, while preserving the right to pursue other legal remedies for a more complete recovery. Franchisees should be aware of this clause and understand the potential financial and legal ramifications of defaulting on the franchise agreement.