What is the franchisee required to do if Devon Creek requests a periodic transfer of Electronic Advertising and Software?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, if Devon Creek requests a periodic transfer of Electronic Advertising and Software, the franchisee must immediately direct all internet service providers, domain name registries, internet search engines, other listing agencies, and software companies with which the franchisee has Electronic Advertising and Software to transfer all of the franchisee's interest in such Electronic Advertising and Software to Devon Creek. The franchisee must also execute documents and take actions necessary to effectuate the transfer.
However, if Devon Creek does not want to accept any or all of the Electronic Advertising and Software, the franchisee must immediately direct the Internet and Software Companies to terminate such Electronic Advertising and Software or take other actions with respect to the Electronic Advertising and Software as Devon Creek directs.
This clause ensures that Devon Creek maintains control over its brand's online presence and marketing assets. It allows Devon Creek to consolidate and manage online advertising and software related to the franchise, ensuring consistency and quality across all franchise locations. For a prospective franchisee, this means they must be prepared to relinquish control of their online advertising and software assets to Devon Creek upon request, and to comply with Devon Creek's decisions regarding the termination or modification of these assets.