Can Devon Creek require a franchisee to enter into software license agreements?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
WHEREAS, Franchisee desires to enter into a franchise agreement with Franchisor for a Devon Creek franchised business ("Franchise Agreement") which will allow Franchisee to conduct internet-based advertising, maintain social media accounts, use software, and use telephone listings linked to the Devon Creek brand.
WHEREAS, Franchisor would not enter into the Franchise Agreement without Franchisee's agreement to enter into, comply with, and be bound by all the terms and provisions of this Agreement;
NOW, THEREFORE, for and in consideration of the foregoing and the mutual promises and covenants contained herein, and in further consideration of the Franchise Agreement and the mutual promises and covenants contained therein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Definitions
All terms used but not otherwise defined in this Agreement shall have the meanings set forth in the Franchise Agreement. "Termination" of the Franchise Agreement shall include, but shall not be limited to, the voluntary termination, involuntary termination, or natural expiration thereof.
2. Internet Advertising and Telephone Listings
- 2.1 Interest in Web Sites, Social Media Accounts, Other Electronic Listings and Software. Franchisee may acquire (whether in accordance with or in violation of the Franchise Agreement) during the term of Franchise Agreement, certain right, title, or interest in and to certain domain names, social media accounts, hypertext markup language, uniform resource locator addresses, access to corresponding internet web sites, the right to hyperlink to certain web sites and listings on various internet search engines, and the right to use certain software (collectively, "Electronic Advertising and Software") related to the Franchised Business or the Marks.
- 2.2 Interest in Telephone Numbers and Listings. Franchisee has or will acquire during the term of the Franchise Agreement, certain right, title, and interest in and to those certain telephone numbers and regular, classified, internet page, and other telephone directory listings (collectively, the "Telephone Listings") related to the Franchised Business or the Marks.
- 2.3 Transfer.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, franchisees are required to use specific software and may need to enter into software license agreements. The Franchise Agreement states that Devon Creek would not enter into the agreement without the franchisee's agreement to use software linked to the Devon Creek brand. Franchisees must also maintain adequate hardware and software to access the internet at the speed Devon Creek requires.
Devon Creek franchisees are responsible for all technology-related fees and expenses, including the costs of computer hardware and software, recurring software and internet access fees, and license or user-based fees, whether paid to Devon Creek or third-party vendors. Franchisees are also responsible for maintaining the security and integrity of their computer and payment processing systems, including implementing necessary security procedures and updates to protect against viruses, malware, and unauthorized access.
Furthermore, Devon Creek retains control over its website, but will include a listing of the franchisee's contact information and allow franchisees to upload completed work. However, franchisees do not have any ownership rights to Devon Creek's website and will lose their listing upon termination or expiration of the Franchise Agreement. This indicates that franchisees must adhere to Devon Creek's technology standards and may incur ongoing costs for software and related services.