factual

What constitutes a default of the Devon Creek franchise agreement regarding additional training or the national business meeting?

Devon_Creek Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisor may offer mandatory and/or optional additional training programs from time to time.

If required by Franchisor, Franchisee, or Franchisee's Principal(s), shall participate in on-going training and/or a national business meeting or systemwide convention, for up to five (5) days per year.

Franchisor reserves the right to impose a reasonable fee for all additional training programs.

Franchisee shall be responsible for any and all incidental expenses incurred by Franchisee or Franchisee's personnel in connection with additional training or attendance at Franchisor's national business meeting or annual convention, including, without limitation, costs of travel, lodging, meals and wages.

Franchisee's failure to attend and/or complete mandatory additional training or failure to attend Franchisor's national business meeting or annual convention is a default of this Agreement.

Franchise shall be responsible for the annual convention fee whether or not Franchisee attends the annual conference.

Franchisee or Franchisee's principal(s) shall be required to obtain any missed mandatory additional training at a location Franchisor designates.

Franchisee shall pay all costs and expenses for such additional missed training, including but not limited to, tuition at the then-current rate and any and all transportation, meals and lodging of Franchisee, Franchisee's principal(s) and Franchisor's training personnel.

Franchisee shall pay to Franchisor any incurred expenses by Franchisor's training personnel within ten (10) days of Franchisor's billing thereof to Franchisee via ACH.

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2024 FDD)

According to the 2024 Devon Creek Franchise Disclosure Document, a franchisee's failure to attend and/or complete mandatory additional training or failure to attend Devon Creek's national business meeting or annual convention constitutes a default of the Franchise Agreement. Devon Creek may offer mandatory and/or optional additional training programs from time to time, and if required by Devon Creek, the franchisee, or the franchisee's principal(s), must participate in on-going training and/or a national business meeting or systemwide convention, for up to five days per year.

Devon Creek reserves the right to impose a reasonable fee for all additional training programs. The franchisee is responsible for any and all incidental expenses incurred by the franchisee or franchisee's personnel in connection with additional training or attendance at Devon Creek's national business meeting or annual convention, including, without limitation, costs of travel, lodging, meals, and wages.

Even if a franchisee does not attend the annual conference, they are still responsible for the annual convention fee. If mandatory additional training is missed, the franchisee or franchisee's principal(s) are required to obtain the missed training at a location Devon Creek designates. The franchisee must pay all costs and expenses for such additional missed training, including tuition at the then-current rate and any and all transportation, meals, and lodging of the franchisee, franchisee's principal(s), and Devon Creek's training personnel. The franchisee must pay to Devon Creek any incurred expenses by Devon Creek's training personnel within ten days of Devon Creek's billing thereof to the franchisee via ACH.

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.