What rights does Devon Creek reserve within or outside the franchisee's territory?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee understands and agrees that all rights to any businesses, other than as specified in this Agreement, are fully reserved to Franchisor within or outside of the Territory.
By way of example only, Franchisor reserves the rights to offer (i) other services and products not offered under the Marks, (ii) other lawn care concepts or products under the Marks or other trademarks, and (iii) products or services through other channels of distribution in the Territory including, but not limited to, co-branding with other residential or commercial lawn care businesses, and products offered through retail stores, the Internet or direct marketing ("Alternate Channels of Distribution").
Franchisor further specifically reserves the right to solicit, sell to, negotiated rates with, and service customers that conduct business across multiple areas or have multiple locations or properties either regionally or nationally, such as real estate brokerage firms, property management firms, residential investors, and real estate developers ("National Accounts").
Franchisor may offer Franchisee the right to service National Accounts in the Territory, provided that Franchisee accept negotiated terms; otherwise, Franchisor may service the National Accounts either directly or permit another franchisee to provide such service.
Franchisee will receive no compensation for Franchisor's sales through Alternate Distribution Channels or declined National Accounts made within the Territory.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the franchisee is granted the right to operate their franchise business exclusively within their designated territory. However, Devon Creek retains significant rights both within and outside of that territory. Devon Creek is allowed to open, operate, or franchise other Devon Creek locations bordering or adjacent to the franchisee's territory. Franchisees are restricted from soliciting customers outside their territory, unless otherwise specified in the agreement.
Devon Creek reserves all rights to businesses not explicitly granted to the franchisee in the agreement. This includes the right to offer other services and products not offered under the Devon Creek marks, other lawn care concepts or products under the Devon Creek marks or other trademarks, and products or services through other channels of distribution. These alternate channels of distribution may include co-branding with other residential or commercial lawn care businesses, retail stores, the Internet, or direct marketing.
Devon Creek also specifically reserves the right to solicit, sell to, negotiate rates with, and service national accounts, which are customers that conduct business across multiple areas or have multiple locations or properties, such as real estate brokerage firms, property management firms, residential investors, and real estate developers. While Devon Creek may offer the franchisee the right to service these national accounts within their territory under negotiated terms, Devon Creek can also service these accounts directly or permit another franchisee to do so. The franchisee will not receive any compensation for Devon Creek's sales through alternate distribution channels or declined national accounts made within the franchisee's territory.