Besides the franchisee, who else is required to sign the Devon Creek franchise agreement?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
If directed to Franchisee: If directed to Covenantor:
Any change in the foregoing addresses shall be affected by giving written notice of such change to the other parties.
- j. Franchisor is an intended third-party beneficiary of this Agreement, and Franchisor may take whatever action it deems necessary to enforce Covenantor's obligations hereunder. The rights and remedies of Franchisor under this Agreement are fully assignable and transferable and shall inure to the benefit of its respective affiliates, successors and assigns.
- k. The respective obligations of Franchisee and Covenantor hereunder may not be assigned by Franchisee or Covenantor, without the prior written consent of Franchisor.
IN WITNESS WHEREOF, the undersigned have entered into this Confidentiality and Non-Compete Agreement as witnessed by their signatures below.
COVENANTOR:
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, in addition to the franchisee, a "Covenantor" may also be required to sign the Confidentiality and Non-Compete Agreement. The FDD indicates that the franchisor, Devon Creek Franchise Group, LLC, is an intended third-party beneficiary of this agreement and can take action to enforce the Covenantor's obligations. The obligations of the Franchisee and Covenantor cannot be assigned without the prior written consent of Devon Creek.
The document includes a signature section for the Covenantor, suggesting that this party has specific obligations and responsibilities under the agreement. The franchisor's right to enforce the Covenantor's obligations highlights the importance of this party's role in maintaining the confidentiality and non-compete aspects of the franchise agreement.
Prospective franchisees should clarify with Devon Creek under what circumstances a Covenantor is required, who qualifies as a Covenantor (e.g., a spouse, business partner, or investor), and the specific obligations and liabilities the Covenantor assumes by signing the agreement. Understanding the role and responsibilities of the Covenantor is crucial for ensuring full compliance with the franchise agreement and avoiding potential disputes.