What claim does Devon Creek ask the franchisee (or developer) to waive regarding business failure?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- Franchisor expressly disclaims the making of, and Franchisee (or Developer) acknowledges that it has not received or relied upon, any warranty or guarantee, express or implied, as to the potential volume, profits or success of the business venture contemplated by the Franchise Agreement (or Multi-Unit Development Agreement).
Initial
- Franchisee (or Developer) acknowledges that Franchisor's approval or acceptance of Franchisee's (or Developer's) Business location does not constitute a warranty, recommendation, or endorsement of the location for the Franchised Business, nor any assurance by Franchisor that the operation of the Franchised Business at the premises will be successful or profitable.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, franchisees (or developers) must acknowledge that Devon Creek does not guarantee the potential volume, profits, or success of the business venture. Franchisees also acknowledge that Devon Creek's approval of a business location does not constitute a warranty, recommendation, or endorsement of the location, nor does it assure the franchisee that the business will be successful or profitable at that location.
This means that franchisees are entering the agreement with the understanding that Devon Creek is not responsible if the business fails to meet their financial expectations or if the chosen location proves to be unsuitable. The franchisee bears the risk of business failure and cannot hold Devon Creek liable for losses based on these factors.
This type of disclaimer is common in franchise agreements. It emphasizes that the franchisee's success depends on their own efforts, market conditions, and other factors beyond Devon Creek's control. Prospective franchisees should carefully consider this risk and conduct their own due diligence to assess the potential for success before investing in a Devon Creek franchise.