What happens to the franchisee's interest in Electronic Advertising and Software upon termination of the Devon Creek Franchise Agreement?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
one 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.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee is required to transfer all rights and interests in Electronic Advertising and Software to Devon Creek. This includes directing internet service providers, domain name registries, internet search engines, other listing agencies, and software companies to transfer all interests in such advertising and software to Devon Creek. The franchisee must also execute any necessary documents to facilitate this transfer.
However, if Devon Creek does not want to accept the Electronic Advertising and Software, the franchisee must direct the relevant companies to terminate the advertising and software or take other actions as directed by Devon Creek. Devon Creek is granted power of attorney to act on behalf of the franchisee to ensure these transfers or terminations are completed. This power of attorney is irrevocable until the franchisee has fulfilled all obligations under the Franchise Agreement and related agreements.
Once the transfer of interests has been duly completed, the franchisee will have no further interest in or obligations related to the Electronic Advertising and Software, as between the franchisee and Devon Creek. However, the franchisee remains responsible for any outstanding payments or obligations owed to the Internet and Software Companies for obligations incurred before the transfer was accepted by Devon Creek. This ensures that Devon Creek gains control over all online assets and listings associated with the brand, while the franchisee remains liable for any pre-existing debts.