Can a Devon Creek franchisee purchase their vehicle instead of leasing it?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
You must use a vehicle of the make, model, and age we require, for travel to your clients' properties. Your vehicle must be no more than 5 years old and in good condition at the time vehicle wrapping occurs, free of noticeable dents or damage. You may use a vehicle you currently own, if we determine, in our sole discretion, that it meets our specifications, and we give our consent. If you must purchase or lease a vehicle, we list current acceptable manufacturer/models in our operations manual. The high end of the above estimate represents the cost of three (3) months of lease payments on a vehicle with no down payment. You must maintain your vehicle in good working order, cleanliness and appearance and promptly repair any visible exterior damage, including but not limited to, dents and scratches. Your actual costs may be higher than the above-listed amount, depending on the quantity of equipment you lease and your credit history. We recommend that you lease this equipment from our approved suppliers. You may elect to purchase, rather than lease, your equipment. If you plan to purchase your vehicle the cost will be significantly higher than what is listed above.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT – START UP FRANCHISEE (FDD pages 16–21)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, a franchisee can choose to purchase a vehicle instead of leasing one. The vehicle must meet specific requirements, including being no more than 5 years old and in good condition when the vehicle wrapping is done. It must also be free of noticeable dents or damage. Devon Creek must approve the make, model, and age of the vehicle.
If a franchisee already owns a vehicle that meets Devon Creek's standards, they may use it with the franchisor's consent. The FDD also states that the operations manual lists acceptable manufacturer/models. The estimated initial investment includes a range that represents the cost of three months of lease payments with no down payment.
If a franchisee chooses to purchase a vehicle, the FDD notes that the cost will be significantly higher than the lease payments listed in the estimated initial investment. The franchisee is responsible for maintaining the vehicle in good condition, cleanliness, and appearance, and for promptly repairing any visible exterior damage.