factual

Does the Devon Creek franchise agreement cover disputes related to the enforcement of the franchisee's post-termination obligations?

Devon_Creek Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 18.1.5 pay to Franchisor all damages, costs and expenses, including reasonable attorneys' fees, incurred by Franchisor in connection with obtaining any remedy available to Franchisor for any violation of this Agreement and, subsequent to the termination or expiration of this Agreement, in obtaining injunctive or other relief for the enforcement of any provisions of this Agreement that survive its termination;

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2024 FDD)

According to Devon Creek's 2024 Franchise Disclosure Document, the franchise agreement addresses the franchisee's obligations upon termination or expiration, including ceasing operations, discontinuing the use of trademarks and intellectual property, and paying outstanding sums to the franchisor. Specifically, the agreement states that the franchisee is liable for all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Devon Creek in obtaining remedies for any violation of the agreement, even after termination. This includes seeking injunctive or other relief to enforce provisions that survive termination.

This means that Devon Creek franchisees are legally bound to adhere to the post-termination obligations outlined in the franchise agreement. If a franchisee fails to meet these obligations, Devon Creek has the right to pursue legal action to enforce compliance. The franchisee will be responsible for covering all associated costs, including attorney fees, that Devon Creek incurs during this process.

This aspect of the agreement protects Devon Creek's interests and ensures that franchisees do not unfairly compete or misuse the brand's assets after the franchise relationship ends. Prospective franchisees should carefully review these post-termination obligations and understand the potential financial implications of non-compliance. It is advisable to consult with a legal professional to fully understand the scope of these obligations and the potential risks involved.

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.