If Devon Creek provides interim management, what fees and costs are charged?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Any failure to comply with the requirements of this Section shall be deemed a material event of default under this Agreement. Franchisor, in Franchisor's sole discretion, may provide interim management support and charge Franchisee the thencurrent interim management support fee until a replacement General Manager is properly trained or certified in accordance with Franchisor's requirements. Franchisee shall pay the interim management support fee, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by Franchisor, upon written demand by Franchisor, or Franchisor may withdraw such amounts from Franchisee's designated bank account in accordance with Section 6.1.4.
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 provide interim management, Devon Creek has the option to provide interim management support. In such cases, the franchisee is responsible for paying Devon Creek's then-current interim management support fee.
In addition to the interim management support fee, the franchisee must also cover any costs incurred by Devon Creek. These costs include travel, lodging, meals, and other expenses reasonably incurred by Devon Creek while providing the interim management support.
The franchisee is obligated to pay these fees and costs upon written demand from Devon Creek. Alternatively, Devon Creek reserves the right to withdraw these amounts directly from the franchisee's designated bank account, as outlined in Section 6.1.4 of the franchise agreement.