For Devon Creek franchisees, does the agreement to attempt internal dispute resolution survive the termination or expiration of the franchise agreement?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.1 Internal Dispute Resolution. Franchisee shall first bring any claim, controversy or dispute arising out of or relating to this Agreement, the Attachments hereto or the relationship created by this Agreement to Franchisor's president and/or chief executive officer for resolution. After providing notice as set forth in Section 21.7 below, Franchisee must exhaust this internal dispute resolution procedure before Franchisee may bring Franchisee's dispute before a third party. This agreement to first attempt resolution of disputes internally shall survive termination or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the agreement to first attempt internal dispute resolution survives the termination or expiration of the Franchise Agreement. This means that even after the franchise agreement ends, either through termination or expiration of its term, the franchisee is still obligated to try to resolve any disputes internally with Devon Creek before pursuing other avenues such as mediation or legal action.
Specifically, the franchisee must bring any claim, controversy, or dispute to Devon Creek's president and/or chief executive officer for resolution. The franchisee must provide notice as outlined in the agreement and exhaust this internal dispute resolution procedure before involving a third party.
This requirement to attempt internal dispute resolution even after the franchise agreement concludes could potentially save both the franchisee and Devon Creek time and money by resolving issues without resorting to costly and time-consuming legal battles. However, it also means that even after the business relationship has ended, the franchisee is still bound by this specific obligation to Devon Creek.