What happens if a Devon Creek franchisee fails to perform a non-monetary obligation?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
17.3.2 fails to perform any non-monetary obligation imposed by this Agreement (excepting those defaults of obligations set forth in Sections 17.1 and 17.2 for which there is no opportunity to cure) and such default shall continue for thirty (30) days after Franchisor has given written notice of such default, or if the default cannot be reasonably corrected within said thirty (30)-day period, then if it is not corrected within such additional time as may be reasonably required assuming Franchisee proceeds diligently to cure; provided, however, Franchisor has no obligation to give written notice of a non-monetary default more than two (2) times in any twelve (12)–month period, and the third such default, whether monetary or non-monetary, in any twelve (12) – month period shall be a non-curable default under Section 17.2.17.
17.4 Franchisor's Cure of Franchisee's Defaults.
In the event of a default by Franchisee, in addition to Franchisor's right to terminate the Franchise Agreement, and not in lieu thereof, Franchisor may, but has no obligation to:
17.4.1 effect a cure on Franchisee's behalf and at Franchisee's expense, and Franchisee shall immediately pay Franchisor the costs incurred by Franchisor upon demand; or
17.4.2 exercise complete authority with respect to the operation of the Franchise Business until such time as Franchisor determines that the default of Franchisee has been
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, if a franchisee fails to perform a non-monetary obligation, they typically have 30 days after written notice from Devon Creek to correct the issue. However, if the default cannot be reasonably corrected within 30 days, the franchisee is granted additional time, assuming they are diligently working to resolve the problem.
Devon Creek is not obligated to provide written notice for a non-monetary default more than twice in a 12-month period. If a third default, whether monetary or non-monetary, occurs within that same 12-month period, it is considered a non-curable default. This means that Devon Creek can terminate the franchise agreement without providing an opportunity to correct the issue.
In the event of a default by the franchisee, Devon Creek has the option, but not the obligation, to take action to correct the default on the franchisee's behalf and at the franchisee's expense. The franchisee is then required to immediately pay Devon Creek for all costs incurred. Devon Creek also has the option to exercise complete authority over the operation of the franchise business until they determine that the franchisee's default has been resolved.