Does the expiration or termination of the Devon Creek Franchise Agreement release the franchisee from liabilities that continue beyond the termination?

According to Devon Creek's 2024 Franchise Disclosure Document, the termination or expiration of the Franchise Agreement does not release the franchisee from all liabilities. Upon termination or expiration, the franchisee must promptly pay all sums owed to Devon Creek and its affiliates, which includes damages, costs, and expenses, including reasonable attorneys' fees, incurred by Devon Creek due to any default by the franchisee. This payment obligation remains until paid in full and constitutes a lien in favor of Devon Creek against the franchisee's personal property, furnishings, equipment, fixtures, inventory, or other business assets at the time of default.

Furthermore, the franchisee is responsible for paying all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Devon Creek in obtaining any remedy available for any violation of the Franchise Agreement. This obligation extends to obtaining injunctive or other relief for the enforcement of any provisions of the agreement that survive its termination or expiration. This means that even after the franchise agreement ends, the franchisee may still be liable for certain obligations and costs arising from breaches or enforcement actions related to the agreement.

In practical terms, a Devon Creek franchisee should understand that termination or expiration of the agreement does not absolve them of financial responsibilities or legal liabilities that may arise from their conduct during the franchise term or from the enforcement of terms that survive termination. It is crucial to understand which provisions survive termination and to ensure all outstanding payments and obligations are met to avoid further legal action or financial penalties.