factual

Who is responsible for the incidental expenses related to additional training or attendance at Devon Creek's national business meeting or annual convention?

Devon_Creek Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisee shall be responsible for any and all incidental expenses incurred by Franchisee or Franchisee's personnel in connection with additional training or attendance at Franchisor's national business meeting or annual convention, including, without limitation, costs of travel, lodging, meals and wages.

Franchisee's failure to attend and/or complete mandatory additional training or failure to attend Franchisor's national business meeting or annual convention is a default of this Agreement.

Franchise shall be responsible for the annual convention fee whether or not Franchisee attends the annual conference.

Franchisee or Franchisee's principal(s) shall be required to obtain any missed mandatory additional training at a location Franchisor designates.

Franchisee shall pay all costs and expenses for such additional missed training, including but not limited to, tuition at the then-current rate and any and all transportation, meals and lodging of Franchisee, Franchisee's principal(s) and Franchisor's training personnel.

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2024 FDD)

According to Devon Creek's 2024 Franchise Disclosure Document, the franchisee is responsible for all incidental expenses incurred while attending additional training programs, national business meetings, or annual conventions. These expenses include, but are not limited to, travel, lodging, meals, and wages for the franchisee and their personnel. This means that in addition to any fees Devon Creek charges for the training or convention itself, the franchisee must also cover all associated out-of-pocket costs.

Devon Creek may require franchisees or their principals to participate in ongoing training, national business meetings, or system-wide conventions for up to five days per year. Failure to attend mandatory additional training or the national business meeting or annual convention constitutes a default of the Franchise Agreement. The franchisee is also responsible for the annual convention fee, regardless of whether they attend the conference. If a franchisee misses mandatory additional training, they must obtain the missed training at a location Devon Creek designates and pay all associated costs, including tuition, transportation, meals, and lodging for both the franchisee/principals and Devon Creek's training personnel.

This arrangement is fairly typical in franchising, where franchisees usually bear the costs of their own ongoing training and development. However, prospective Devon Creek franchisees should carefully consider these potential expenses when evaluating the overall cost of the franchise. It is important to budget not only for the initial franchise fee and startup costs but also for these recurring training and meeting expenses. Franchisees should inquire about the frequency and location of these events to estimate the potential financial impact on their business.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.