When does the Devon Creek franchise agreement term terminate?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
All terms used but not otherwise defined in this Agreement shall have the meanings set forth in the Franchise Agreement. "Termination" of the Franchise Agreement shall include, but shall not be limited to, the voluntary termination, involuntary termination, or natural expiration thereof.
- 18.1 Franchisee's Obligations. Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee shall immediately terminate and Franchisee and each Principal shall:
- 18.1.1 immediately cease to operate the Franchised Business, and shall not thereafter, directly or indirectly identify himself, herself or itself as a current Devon Creek owner, franchisee or licensee;
- 18.1.2 immediately and permanently cease to use the Marks, any imitation of any Mark, Franchisor's copyrighted material or other intellectual property, confidential or proprietary material or indicia of the Franchised Business, or use any trade name, trade or service mark or other commercial symbol that suggests a current or past association with Franchisor, Licensor, or the System. In particular, Franchisee shall cease to use, without limitation, all signs, billboards, advertising materials, displays, stationery, forms and any other articles, which display the Marks;
- 18.1.3 take such action as may be necessary to cancel any assumed name or equivalent registration that contains the Mark or any other service mark or trademark of Franchisor, and Franchisee shall furnish Franchisor with evidence of compliance with this obligation which is satisfactory to Franchisor, within ten (10) days after termination or expiration of this Agreement;
- 18.1.4 promptly pay all sums owing to Franchisor and its affiliates. Such sums shall include all damages, costs and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of any default by Franchisee. The payment obligation herein shall give rise to and remain, until paid in full, a lien in favor of Franchisor against any and all of the personal property, furnishings, equipment,
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
The 2024 Devon Creek Franchise Disclosure Document states that the termination of the Franchise Agreement includes voluntary termination, involuntary termination, or natural expiration. The agreement specifies post-termination obligations, indicating that upon termination or expiration, all rights granted to the franchisee immediately cease.
Specifically, the franchisee must immediately stop operating the franchised business and cannot identify as a current Devon Creek owner, franchisee, or licensee. They must also cease using Devon Creek's trademarks, copyrighted material, and other intellectual property. This includes all advertising materials, signs, and displays that feature the Devon Creek marks.
Furthermore, the franchisee is obligated to cancel any assumed name registrations containing Devon Creek's trademarks and provide evidence of compliance to Devon Creek within ten days of termination or expiration. All sums owed to Devon Creek and its affiliates must be promptly paid, and this obligation creates a lien in favor of Devon Creek against the franchisee's business assets until fully paid.