factual

What is the Devon Creek franchisee required to do until a replacement General Manager is designated?

Devon_Creek Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 11.4.3.

If the General Manager is not able to continue to serve in such capacity, or no longer qualifies to act as such in accordance with this Agreement, Franchisee shall promptly notify Franchisor and designate a replacement manager within thirty (30) days after the General Manager ceases to serve, such replacement being subject to the same qualifications required by this Agreement (including, but not limited to, completing all training and obtaining all certifications required by Franchisor).

Until such replacement is designated, Franchisee shall provide for interim management of the Franchised Business, who shall act in accordance with the terms of this Agreement.

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2024 FDD)

According to Devon Creek's 2024 Franchise Disclosure Document, if a General Manager is no longer able to serve or no longer qualifies, the franchisee must promptly notify Devon Creek and designate a qualified replacement within 30 days. Until a replacement is designated, the franchisee is required to provide interim management for the Franchised Business, ensuring that this interim management acts in accordance with the terms of the Franchise Agreement.

This requirement ensures the continued operation of the Devon Creek franchise in compliance with the established standards and procedures. The interim manager must adhere to all terms outlined in the agreement, maintaining the quality and consistency of service expected by Devon Creek customers.

Failure to comply with these requirements constitutes a material breach of the Franchise Agreement. Devon Creek, at its discretion, may provide interim management support and charge the franchisee a fee, plus all associated costs such as travel, lodging, and meals, until a replacement General Manager is properly trained and certified. This fee can be charged upon written demand or withdrawn from the franchisee's designated bank account.

This clause highlights the importance Devon Creek places on consistent management and adherence to standards. It also protects Devon Creek's interests by allowing them to step in and manage the franchise if the franchisee fails to provide adequate interim management, albeit at the franchisee's expense.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.