How long does Devon Creek have to close the purchase if it exercises its right of first refusal?

According to Devon Creek's 2024 Franchise Disclosure Document, if Devon Creek exercises its right of first refusal to purchase a franchisee's interest, it has at least thirty (30) days to close the purchase. This timeframe begins after Devon Creek notifies the franchisee of its intent to buy the interest.

This means that if a franchisee decides to sell their Devon Creek franchise, they must first offer the franchise to Devon Creek on the same terms as the proposed sale. Devon Creek then has a period to decide whether to purchase the franchise themselves. If Devon Creek decides to exercise this right, the closing of the purchase must occur within the specified 30-day period.

It's important to note that Devon Creek is entitled to receive all customary representations and warranties from the franchisee, similar to what would be expected in a standard business asset or equity interest sale. This ensures that Devon Creek receives the necessary assurances about the business they are acquiring. This clause protects Devon Creek in the event they decide to purchase the franchise back from the franchisee.