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Can Devon Creek change or dissolve the franchisee advisory council at any time?

Devon_Creek Franchise · 2024 FDD

Answer from 2024 FDD Document

We do not have an advertising council composed of franchisees that advises us on advertising policies. The Franchise Agreement gives us the right, in our discretion, to create a franchisee advisory council to communicate ideas, including proposed advertising policies. If created, we will determine in advance how franchisees are selected to the council, which may include factors such as a franchisee's level of success, superior performance, and profitability. We reserve the right to change or dissolve the council at any time.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–32)

What This Means (2024 FDD)

According to Devon Creek's 2024 Franchise Disclosure Document, Devon Creek has the right to create a franchisee advisory council to facilitate communication of ideas, including those related to proposed advertising policies. However, Devon Creek retains full discretion over the council's existence and structure.

Devon Creek determines how franchisees are selected for the council, potentially considering factors like a franchisee's success level, performance, and profitability. This selection process is entirely at Devon Creek's discretion, meaning franchisees have no guaranteed right to participate, even if they are high-performing.

Importantly, Devon Creek explicitly reserves the right to change or dissolve the franchisee advisory council at any time. This means that even if a council is established and a franchisee is selected to participate, Devon Creek can unilaterally alter the council's composition, structure, or even eliminate it entirely. This gives Devon Creek significant control over franchisee input and influence on advertising and other policies.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.