Does the Devon Creek franchisee have to direct Internet and Software Companies to transfer Electronic Advertising and Software to the franchisor on periodic request of the franchisor?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
one directory listings (collectively, the "Telephone Listings") related to the Franchised Business or the Marks.
- 2.3 Transfer. On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:
- 2.3.1 direct all internet service providers, domain name registries, internet search engines, other listing agencies and software companies (collectively, the "Internet and Software Companies") with which Franchisee has Electronic Advertising and Software: (i) to transfer all of Franchisee's interest in such Electronic Advertising and Software 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 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.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, franchisees are required to direct Internet and Software Companies to transfer Electronic Advertising and Software to Devon Creek on the termination of the Franchise Agreement or upon the franchisor's periodic request. This includes instructing internet service providers, domain name registries, internet search engines, other listing agencies, and software companies to transfer all of the franchisee's interest in such Electronic Advertising and Software to Devon Creek. Franchisees must also execute necessary documents and actions to facilitate this transfer.
However, if Devon Creek does not want to accept any or all of the Electronic Advertising and Software, the franchisee must direct the Internet and Software Companies to terminate the Electronic Advertising and Software or take other actions as directed by Devon Creek. This ensures that Devon Creek maintains control over its brand's online presence and marketing assets, even those managed locally by franchisees.
This requirement is further supported by the franchisee granting Devon Creek a power of attorney, allowing Devon Creek to act on the franchisee's behalf to ensure these transfers or terminations are completed. Devon Creek can use this power of attorney to execute documents and take actions necessary to accomplish the transfer of the Electronic Advertising and Software. This appointment is considered irrevocable until the franchisee fulfills all obligations under the Franchise Agreement and related agreements.