Does the Devon Creek franchisee need to transfer all of their interest in Telephone Listings to Devon Creek?
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. In the event Franchisor does not desire to accept any or all such Telephone Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Listings or will take such other actions with respect to the Telephone Listings as Franchisor directs.
- 2.4 Appointment; Power of Attorney. Franchisee hereby constitutes and appoints Franchisor and any officer or agent of Franchisor, for Franchisor's benefit under the Franchise Agreement and this Agreement or otherwise, with full power of substitution, as Franchisee's true and lawful attorney-in-fact with full power and authority in Franchisee's place and stead, and in Franchisee's name or the name of any affiliated person or affiliated company of Franchisee, to take any and all appropriate action and to execute and deliver any and all documents that may be necessary or desirable to accomplish the purposes of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, a franchisee is generally required to transfer all interest in Telephone Listings to Devon Creek upon termination of the Franchise Agreement or at Devon Creek's periodic request. These Telephone Listings encompass telephone numbers and directory listings related to the franchised business or the Devon Creek brand.
Specifically, the franchisee must direct all telephone companies and listing agencies to transfer their interest in the Telephone Listings to Devon Creek and execute any necessary documents to facilitate this transfer. However, Devon Creek has the option to decline the transfer of some or all of the Telephone Listings. In such cases, the franchisee is obligated to terminate the listings or take other actions as directed by Devon Creek.
To ensure compliance, the franchisee grants Devon Creek a power of attorney, allowing Devon Creek to take necessary actions and execute documents to fulfill the agreement's purposes, including the transfer or termination of Telephone Listings. After the transfer of the franchisee's interests in the Telephone Listings to Devon Creek, the franchisee will have no further interest in or obligations related to those listings, although they remain liable for any outstanding payments owed to the telephone companies for obligations incurred before the transfer date.