Where in the Devon Creek Franchise Agreement are defaults described?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Section in Franchise Provision Agreement Summary h. "Cause" defined - non-curable Sections 17.1 and The Franchise Agreement will terminate I defaults 17.2 automatically, without notice for the following derdans 17.2 defaults: insolvency; bankruptcy; written admission of inability to pay debts; receivership; levy; composition with creditors; unsatisfied final judgment for more than fifteen (15) days; or foreclosure proceeding that is not disclosed within fifteen (15) days. We may terminate the Franchise Agreement upon notice to you if you: do not obtain required licenses and permits and/or open the Franchised Business within required time frames; falsify any report to us; fail to operate for a period of fifteen (15) consecutive days or more; fail to comply with applicable laws; understate Gross Revenue; fail to comply with insurance and indemnification requirements; attempt a transfer in violation of the Franchise Agreement; fail, or your legal representative fails to transfer as required upon your death or permanent disability; misrepresent or omit a material fact in applying for the Franchise; are convicted or plead no contest to a felony or crime that could damage the goodwill or reputation of the Marks or the System; receive an adverse judgment in any proceeding involving allegations of fraud, racketeering or improper trade practices or similar claim that could damage the goodwill or reputation of the Marks or the System; conceal revenues or maintain false books; create a threat or danger to public health or safety; refuse an inspection or audit by us; use the Marks, copyrighted material or Confidential Information in an unauthorized manner; make an unauthorized disclosure of Confidential Information; fail to comply with non-competition covenants; default in the performance of your obligations two (2) or more times during the term or receive two (2) or more default notices in any 12-month period regardless if they were timely cured; default under any other agreement with us or our affiliate; have insufficient funds to honor a check or EFT two (2) or more times within any twelve (12)-month period; fails to meet Minimum Performance Standards; or terminate the Franchise Agreement without _ cause.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 37–42)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, defaults are described in Sections 17.1 and 17.2 of the Franchise Agreement. The document outlines specific events that constitute a default, some of which are non-curable and lead to automatic termination without notice. These include insolvency, bankruptcy, admitting inability to pay debts, receivership, levy, composition with creditors, an unsatisfied final judgment for more than 15 days, or undisclosed foreclosure proceedings.
Devon Creek may terminate the Franchise Agreement with notice if the franchisee fails to obtain necessary licenses or open the business on time, falsifies reports, ceases operation for 15 or more consecutive days, violates laws, understates gross revenue, doesn't comply with insurance or indemnification, attempts unauthorized transfers, misrepresents facts in the application, is convicted of a relevant crime, receives an adverse judgment related to fraud, conceals revenues, endangers public health, refuses inspections, misuses trademarks or confidential information, violates non-competition agreements, defaults multiple times, defaults under other agreements with Devon Creek, has insufficient funds for checks, fails to meet performance standards, or terminates the agreement without cause.
These provisions are important for a prospective Devon Creek franchisee to understand because they detail the circumstances under which the franchise can be terminated, either automatically or with notice from Devon Creek. Understanding these conditions is crucial for maintaining compliance and avoiding potential termination of the franchise agreement. Franchisees should pay close attention to the specific requirements and timelines to ensure they meet all obligations and avoid default.