What is the Devon Creek franchisee's obligation regarding the use of good faith in dealings with customers?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Accordingly, Franchisee agrees to: (i) use its best efforts to ensure the complete satisfaction of each of Franchisee's customers; (ii) apply the highest standards of customer service and use good faith in all dealings with customers, potential customers, referral sources, suppliers and creditors; (iii) respond to customer complaints in a courteous, prompt, and professional manner; (iv) use its best efforts to promptly and fairly resolve customer disputes; and (v) within twenty-four (24) hours of receiving a request from Franchisor, provide Franchisor a written summary of the dispute.
If Franchisee fails to resolve a dispute with a customer, for any reason whatsoever, Franchisor, in its sole discretion and for the sole purpose of protecting the goodwill and reputation of the System and the Marks, may (but shall not be obligated to) investigate the matter and take such action as Franchisor may deem necessary or appropriate to resolve the dispute fairly and promptly, including, but not limited to, the issuance of a refund on Franchisee's behalf.
Within ten (10) days after receiving notice thereof, Franchisee shall reimburse Franchisor for any amounts refunded to a customer on Franchisee's behalf. Franchisee hereby authorizes Franchisor to take payment of refunded amounts, at Franchisor's option, through electronic funds transfer or ACH payment. Nothing contained in this Section or any other provision of this Agreement shall be construed to impose liability upon Franchisor to any third party for any action by or obligation of Franchisee.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, franchisees must apply the highest standards of customer service and use good faith in all interactions with customers, potential customers, referral sources, suppliers, and creditors. This means a Devon Creek franchisee is expected to act honestly and fairly in all business dealings, striving to ensure customer satisfaction and promptly resolving any complaints or disputes.
Devon Creek emphasizes exceeding customer expectations as crucial for the franchisee's success and the overall reputation of the Devon Creek system. Franchisees are required to respond to customer complaints courteously, promptly, and professionally, and to resolve disputes fairly. If a franchisee fails to resolve a customer dispute, Devon Creek has the option, but not the obligation, to step in and take action, including issuing a refund on the franchisee's behalf to protect the brand's goodwill.
If Devon Creek issues a refund to a customer on the franchisee's behalf, the franchisee is obligated to reimburse Devon Creek for the refunded amount within ten days of receiving notice. The agreement authorizes Devon Creek to take payment for these refunds through electronic funds transfer or ACH payment. However, it's important to note that this intervention by Devon Creek does not impose any liability on Devon Creek to any third party for the franchisee's actions or obligations. This clause underscores the importance of franchisees handling customer relations effectively to avoid franchisor intervention and potential financial repercussions.