What section of the Devon Creek Franchise Agreement defines the requirements for franchisee renewal or extension?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
| Section in | |||
|---|---|---|---|
| Franchise | |||
| ł | Provision | Agreement | Summary |
| c. | Requirements for franchisee to renew or extend | Sections 5.1 and 5.2 | Be in full compliance, have no more than five (5) events of default during current term, provide written notice to us at least ten months before the end of the term, execute a new franchise agreement, pay us a Successor Agreement Fee of 10% of the then current Initial Franchise Fee, repair, upgrade or replace the equipment and other Franchised Business assets to meet then-current specifications, execute a general release, comply with then-current qualifications and training requirements, including completion of additional training, subject to state law. You may be asked to sign a new Franchise Agreement with materially different terms and conditions than your original Franchise Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 37–42)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, the requirements for a franchisee to renew or extend their franchise agreement are detailed in Sections 5.1 and 5.2 of the Franchise Agreement.
To be eligible for renewal or extension, a franchisee must be in full compliance with the agreement and must not have had more than five events of default during the current term. The franchisee is required to provide written notice to Devon Creek at least ten months before the end of the current term. Additionally, the franchisee must execute a new franchise agreement, which may contain materially different terms and conditions from the original agreement.
Financially, the franchisee must pay Devon Creek a Successor Agreement Fee equal to 10% of the then-current Initial Franchise Fee. The franchisee is also responsible for repairing, upgrading, or replacing equipment and other franchised business assets to meet the specifications that are current at the time of renewal. Finally, the franchisee must execute a general release and comply with the then-current qualifications and training requirements, which may include completing additional training.