Does the Devon Creek franchisee retain any rights to their Electronic Advertising and Software after the Franchise Agreement is terminated?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
and other telephone 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 Devon Creek's 2024 Franchise Disclosure Document, franchisees do not retain rights to their Electronic Advertising and Software upon termination of the Franchise Agreement. The agreement stipulates that upon termination, the franchisee must transfer all rights and interests in their Electronic Advertising and Software to Devon Creek. This includes directing internet service providers, domain name registries, search engines, and software companies to transfer the franchisee's interest to Devon Creek.
Devon Creek has the option to either accept the Electronic Advertising and Software or direct the relevant companies to terminate it. To facilitate this transfer or termination, the franchisee grants Devon Creek a power of attorney, allowing Devon Creek to act on the franchisee's behalf to execute necessary documents. This power of attorney is irrevocable until the franchisee has fulfilled all obligations under the Franchise Agreement and related agreements.
This requirement ensures that Devon Creek maintains control over its brand and online presence, even after a franchise agreement ends. For a prospective franchisee, this means that any investment in building online assets, such as websites or social media accounts, becomes the property of Devon Creek upon termination of the agreement. Franchisees should be aware that they will lose these assets and should factor this into their business planning and investment decisions.