When is the Devon Creek Interim Management Fee due?

According to Devon Creek's 2024 Franchise Disclosure Document, the Interim Management Fee is due as incurred. This fee, which is the greater of $350 per day or 10% of Gross Revenue earned during the period of interim management, plus all travel-related and other expenses, is charged if Devon Creek provides on-site management of the franchise. This can occur in situations such as the franchisee's death or disability, default of the Franchise Agreement, or absence of a qualified general manager.

For a prospective Devon Creek franchisee, this means that if the franchisor steps in to manage the outlet temporarily, they will be responsible for covering the costs. These costs include either a fixed daily rate or a percentage of the revenue generated during that time, in addition to any travel and other related expenses incurred by Devon Creek. The fee is in addition to all regularly occurring fees such as the Continuing Royalty Fee and Brand Fund Contributions.

The "as incurred" due date means that Devon Creek will likely bill the franchisee regularly (e.g., weekly or monthly) for the interim management services provided. Franchisees should be prepared to pay these fees promptly to avoid any late payment penalties or disruptions to the interim management services. It is important for prospective franchisees to understand the circumstances under which this fee may be imposed and to factor this potential cost into their financial planning.

It is also important to note that Devon Creek has sole discretion in determining when to provide interim on-site management. A prospective franchisee should clarify with Devon Creek the specific conditions that would trigger the imposition of this fee and what recourse they have if they disagree with the need for interim management.