Can Devon Creek direct the franchisee to take actions regarding Electronic Advertising and Software other than transferring or terminating it?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
In the event Franchisor does not desire to accept any or all such Electronic Advertising and Software, Franchisee will immediately direct the Internet and Software Companies to terminate such Electronic Advertising and Software or will take such other actions with respect to the Electronic Advertising and Software as Franchisor directs; and
- 2.3.2 direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which Franchisee has Telephone Listings: (i) to transfer all Franchisee's interest in such Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer.
In the event Franchisor does not desire to accept any or all such Telephone Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Listings or will take such other actions with respect to the Telephone Listings as Franchisor directs.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, Devon Creek can direct franchisees to take actions regarding Electronic Advertising and Software beyond just transferring or terminating it. Specifically, upon termination of the Franchise Agreement or at Devon Creek's request, if Devon Creek does not want to accept the Electronic Advertising and Software, the franchisee must direct the Internet and Software Companies to terminate such Electronic Advertising and Software or take other actions as Devon Creek directs. This also applies to Telephone Listings.
This means that Devon Creek has the authority to instruct franchisees to modify or alter their Electronic Advertising and Software, not just transfer or terminate it. This gives Devon Creek significant control over the franchisee's online presence and marketing strategies, even allowing them to dictate specific changes or actions related to the franchisee's online advertising and software usage.
For a prospective Devon Creek franchisee, this highlights the importance of understanding Devon Creek's marketing and advertising standards. Franchisees need to be prepared to comply with Devon Creek's directives regarding their online presence, even if it means making changes they might not otherwise choose. This level of control is common in franchising, as franchisors aim to maintain brand consistency and protect the overall image of the brand. Franchisees should discuss with Devon Creek what 'other actions' might be required in practice.