Does the Devon Creek franchisee need to transfer all of their interest in Electronic Advertising and Software to Devon Creek?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
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;
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek FDD, a franchisee is generally required to transfer all interest in Electronic Advertising and Software to Devon Creek upon termination of the Franchise Agreement or upon periodic request from Devon Creek. This includes domain names, social media accounts, website access, and software related to the franchised business or the Marks.
Specifically, the franchisee must direct all 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. The franchisee must also execute any necessary documents 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 terminate the Electronic Advertising and Software as directed by Devon Creek.
To ensure compliance, the FDD grants Devon Creek a power of attorney to act on behalf of the franchisee to effect these transfers or terminations. After the transfer of interests is complete, the franchisee will have no further interest in or obligations with respect to the Electronic Advertising and Software, although they remain liable for any outstanding payments owed to the Internet and Software Companies for obligations incurred before the transfer date.