Will a Devon Creek franchisee receive compensation for sales made through Alternate Distribution Channels within their territory?

According to Devon Creek's 2024 Franchise Disclosure Document, franchisees will not receive compensation for sales the franchisor makes through Alternate Distribution Channels or declined National Accounts within the franchisee's territory. Alternate Channels of Distribution include co-branding with other residential or commercial lawn care businesses, products offered through retail stores, the Internet, or direct marketing. National Accounts are customers that conduct business across multiple areas or have multiple locations or properties either regionally or nationally, such as real estate brokerage firms, property management firms, residential investors, and real estate developers.

Devon Creek reserves the right to solicit, sell to, negotiate rates with, and service National Accounts. The franchisor may offer the franchisee the right to service National Accounts within their territory, but this is subject to negotiated terms. If the franchisee declines these terms, Devon Creek can service these accounts directly or allow another franchisee to do so.

This policy means that a Devon Creek franchisee's revenue may be affected by sales within their territory that they do not directly control. It is important for prospective franchisees to understand how the franchisor intends to utilize Alternate Distribution Channels and National Accounts in their territory, and how this might impact their potential earnings. Franchisees should discuss with Devon Creek what support or resources are available to help them compete effectively within their territory, given the franchisor's right to operate alternative channels.