How long does a Devon Creek franchisee have to reimburse Franchisor for customer refunds?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Within ten (10) days after receiving notice thereof, Franchisee shall reimburse Franchisor for any amounts refunded to a customer on Franchisee's behalf. Franchisee hereby authorizes Franchisor to take payment of refunded amounts, at Franchisor's option, through electronic funds transfer or ACH payment. Nothing contained in this Section or any other provision of this Agreement shall be construed to impose liability upon Franchisor to any third party for any action by or obligation of Franchisee.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, a franchisee has ten days to reimburse Devon Creek for any customer refunds that Devon Creek issues on the franchisee's behalf. This reimbursement period begins after the franchisee receives notice of the refund.
This means that if a customer has a dispute that the franchisee cannot resolve, Devon Creek has the option to step in and issue a refund to the customer to protect the brand's reputation. However, the franchisee is ultimately responsible for covering the cost of that refund.
Devon Creek also has the right to take payment of refunded amounts through electronic funds transfer or ACH payment. This clause in the franchise agreement ensures that Devon Creek can quickly recover any funds it refunds to customers on behalf of the franchisee, maintaining financial stability for the franchisor while placing the financial burden of customer disputes on the franchisee.