What are the franchisee's obligations to Devon Creek regarding Electronic Advertising and Software if Devon Creek does not want to accept it upon termination?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
18. POST-TERMINATION
- 18.1 Franchisee's Obligations. Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee shall immediately terminate and Franchisee and each Principal shall:
- 18.1.1 immediately cease to operate the Franchised Business, and shall not thereafter, directly or indirectly identify himself, herself or itself as a current Devon Creek owner, franchisee or licensee;
- 18.1.2 immediately and permanently cease to use the Marks, any imitation of any Mark, Franchisor's copyrighted material or other intellectual property, confidential or proprietary material or indicia of the Franchised Business, or use any trade name, trade or service mark or other commercial symbol that suggests a current or past association with Franchisor, Licensor, or the System. In particular, Franchisee shall cease to use, without limitation, all signs, billboards, advertising materials, displays, stationery, forms and any other articles, which display the Marks;
- 18.1.3 take such action as may be necessary to cancel any assumed name or equivalent registration that contains the Mark or any other service mark or trademark of Franchisor, and Franchisee shall furnish Franchisor with evidence of compliance with this obligation which is satisfactory to Franchisor, within ten (10) days after 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 franchisee has obligations regarding electronic advertising and software upon termination of the franchise agreement. Specifically, the franchisee may acquire rights or interests in domain names, social media accounts, and software related to the franchised business during the term of the agreement.
Upon termination of the agreement, all rights and licenses granted to the franchisee immediately terminate. The franchisee must cease operating the franchised business and cannot identify themselves as a current Devon Creek owner or franchisee. They must also immediately stop using Devon Creek's marks, copyrighted material, and other intellectual property.
This includes ceasing the use of all advertising materials, signs, and displays that feature Devon Creek's marks. The franchisee is also obligated to take necessary actions to cancel any assumed name registrations that contain Devon Creek's trademarks and provide evidence of compliance to Devon Creek within ten days of termination. These obligations ensure that the franchisee disassociates completely from the Devon Creek brand upon termination, protecting the brand's integrity and preventing potential confusion in the marketplace.