To whom are costs and attorney's fees payable for a Devon Creek franchise?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
| V1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Taxes | Amount of taxes | When incurred. | You must reimburse us for any taxes that we must pay to any taxing authority on account of either the operation of your Franchised Business or payments that you make to us, including, but not limited to any sales taxes or income taxes imposed by any authority. |
| Insurance | Cost of insurance; If you fail to maintain the required insurance, we have the right to procure insurance on your behalf and you must pay us, on demand, for the costs and premiums we incur plus 10% | As incurred | You are required to maintain the types and amounts of insurance specified in Item 8 and, as more detailed, the Franchise Agreement. |
| Interest Charge | 1.5% per month from due date, or maximum allowed by law | As incurred | Due on all overdue amounts from the date the amounts were originally due. |
| Indemnification Will vary under circumstances | As incurred | You must reimburse us if we are held liable for claims directly or indirectly arising out of your Devon Creek Franchise, operation. See Footnote 8. | |
| Costs and Attorney's Fees | Will vary under circumstances | As incurred | Payable to us |
| Mystery Shop or Quality | Actual Cost. | As incurred. | Payable to third-party providers or us. See footnote 11. |
| Assurance Services |
Source: Item 6 — OTHER FEES (FDD pages 8–16)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, costs and attorney's fees are payable to the franchisor, Devon Creek. These fees can vary depending on the circumstances.
This means that if Devon Creek incurs costs and attorney's fees due to any claims, losses, or damages arising directly or indirectly from the franchisee's business operations, the franchisee is responsible for reimbursing Devon Creek. This includes the costs of defending against such claims.
This is a standard clause in most franchise agreements, designed to protect the franchisor from liabilities caused by the franchisee's actions. A prospective Devon Creek franchisee should carefully consider this obligation and ensure they have adequate insurance and risk management strategies in place to minimize the potential for such claims.