Who bears the cost of transferring the Electronic Advertising and Software to Devon Creek upon termination of the Franchise Agreement?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
one directory listings (collectively, the "Telephone Listings") related to the Franchised Business or the Marks.
- 2.3 Transfer. On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:
- 2.3.1 direct all internet service providers, domain name registries, internet search engines, other listing agencies and software companies (collectively, the "Internet and Software Companies") with which Franchisee has Electronic Advertising and Software: (i) to transfer all of Franchisee's interest in such Electronic Advertising and Software to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer. In the event Franchisor does not desire to accept any or all such Electronic Advertising and Software, Franchisee will immediately direct the Internet and Software Companies to terminate such Electronic Advertising and Software or will take such other actions with respect to the Electronic Advertising and Software as Franchisor directs; and
- 2.3.2 direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which Franchisee has Telephone Listings: (i) to transfer all Franchisee's interest in such Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer. In the event Franchisor does not desire to accept any or all such Telephone Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Listings or will take such other actions with respect to the Telephone Listings as Franchisor directs.
- 2.4 Appointment; Power of Attorney. Franchisee hereby constitutes and appoints Franchisor and any officer or agent of Franchisor, for Franchisor's benefit under the Franchise Agreement and this Agreement or otherwise, with full power of substitution, as Franchisee's true and lawful attorney-in-fact with full power and authority in Franchisee's place and stead, and in Franchisee's name or the name of any affiliated person or affiliated company of Franchisee, to take any and all appropriate action and to execute and deliver any and all documents that may be necessary or desirable to accomplish the purposes of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the franchisee is responsible for the costs associated with transferring Electronic Advertising and Software to Devon Creek upon termination of the Franchise Agreement. Specifically, the franchisee must direct internet service providers, domain name registries, internet search engines, other listing agencies, and software companies to transfer all interests in the Electronic Advertising and Software to Devon Creek. The franchisee is also responsible for executing any necessary documents to facilitate this transfer.
This requirement means that a franchisee will need to cover any fees or expenses charged by these Internet and Software Companies for transferring the domain names, social media accounts, website content, software licenses, and other related digital assets to Devon Creek. These costs can vary depending on the specific services used and the transfer policies of each provider. It is also important to note that if Devon Creek does not want to accept the Electronic Advertising and Software, the franchisee is obligated to terminate these services as directed by Devon Creek.
Furthermore, the franchisee grants Devon Creek a power of attorney to act on their behalf to ensure these transfers or terminations are completed. This power of attorney allows Devon Creek to directly manage the transfer process with the Internet and Software Companies, which can streamline the process but also gives Devon Creek significant control over the franchisee's digital assets upon termination. The franchisee's obligations to transfer these assets continue until all requirements under the Franchise Agreement are met, reinforcing the importance of understanding these post-termination responsibilities.
In summary, a prospective Devon Creek franchisee should be aware that they will bear the financial burden of transferring all Electronic Advertising and Software to Devon Creek upon termination. This includes any transfer fees, termination costs, or other expenses associated with these digital assets. Franchisees should factor these potential costs into their financial planning and understand the implications of granting Devon Creek the power of attorney to manage these transfers.