What rights to telephone numbers of the Franchised Business can Devon Creek require the franchisee to assign?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.3 Assignment of Communications.
Franchisee, at the option of Franchisor, shall assign to Franchisor all rights to the telephone numbers of the Franchised Business and any related public directory listing or other business listings and execute all forms and documents required by Franchisor and any telephone company at any time, to transfer such service and numbers to Franchisor.
Further, Franchisee shall assign to Franchisor any and all social media and internet listings, domain names, internet advertising, websites, listings with search engines, electronic mail addresses or any other similar listing or usage related
to the Franchised Business. Notwithstanding any forms and documents that may have been executed by Franchisee under Section 11.7, Franchisee shall provide Franchisor with all passwords and administrative rights, and hereby appoints Franchisor its true and lawful agent and attorney-in-fact with full power and authority, for the sole purpose of taking such action as is necessary to complete such assignment. This power of attorney shall survive the expiration or termination of this Agreement. Franchisee shall thereafter use different telephone numbers, electronic mail addresses, social media accounts or other listings or usages at or in connection with any subsequent business conducted by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, Devon Creek has the option to require franchisees to assign all rights to the telephone numbers of the franchised business. This includes any related public directory listings or other business listings.
To facilitate this transfer, Devon Creek franchisees must execute all necessary forms and documents requested by Devon Creek and any telephone company to transfer the service and numbers to the franchisor. Franchisees are also obligated to assign any and all social media and internet listings, domain names, internet advertising, websites, listings with search engines, electronic mail addresses, or any other similar listing or usage related to the Franchised Business.
Moreover, franchisees must provide Devon Creek with all passwords and administrative rights to these accounts. The franchisor is appointed as the franchisee's agent and attorney-in-fact to take any action necessary to complete the assignment. This power of attorney survives the expiration or termination of the Franchise Agreement. After the transfer, franchisees are required to use different telephone numbers, email addresses, social media accounts, or other listings in any subsequent business they conduct.
This provision ensures that upon termination or expiration of the franchise agreement, Devon Creek maintains control over the business's established phone numbers and online presence, preventing potential confusion or competition from former franchisees. This is a fairly standard practice in franchising, as it protects the brand's identity and customer relationships.