How is the Successor Agreement Fee calculated for a Devon Creek franchise?

According to Devon Creek's 2024 Franchise Disclosure Document, the Successor Agreement Fee is calculated as 10% of the then-current initial franchise fee. This fee is required if a franchisee desires to enter into a Successor Franchise Agreement after the initial term of the franchise agreement expires.

To exercise the option to renew, the franchisee must request the current Disclosure Document from Devon Creek in writing at least nine months before the end of the initial term. The franchisee must then execute and return all required documents, including any ancillary documents, within 60 days of receiving the Disclosure Document. The Successor Franchise Agreement will replace the original agreement, and the terms of the new agreement may differ, potentially including higher or lower royalty and other fees.

Several conditions must be met for a franchisee to be eligible for a Successor Franchise Agreement. These include being in full compliance with the existing agreement, the operations manual, and all other agreements with Devon Creek, including meeting all monetary obligations. Additionally, the franchisee must not have committed five or more uncured defaults during the current term. Completing any additional required training to Devon Creek's satisfaction is also a prerequisite.

It's important to note that Devon Creek reserves the right not to offer a successor agreement if they decide to withdraw from the territory where the franchise is located. Franchisees should be aware of these conditions and the potential for changes in terms when considering whether to renew their franchise agreement.