factual

Who must supervise the Devon Creek franchised business immediately after the death or permanent disability of the franchisee?

Devon_Creek Franchise · 2024 FDD

Answer from 2024 FDD Document

Immediately after the death or permanent disability of such person, or while the Franchise is owned by an executor, administrator, guardian, personal representative or trustee of that person, the Franchised Business shall be supervised by an interim successor manager satisfactory to Franchisor, or Franchisor, in its sole discretion, may provide interim management for a fee equal to the then-current interim management support fee, plus any and all costs of travel, lodging, meals and other expenses reasonably incurred by Franchisor, pending transfer of the Franchise to the deceased or disabled individual's lawful heirs or successors.

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2024 FDD)

According to Devon Creek's 2024 Franchise Disclosure Document, in the event of the death or permanent disability of a franchisee, the franchised business must be supervised by an interim successor manager who is satisfactory to Devon Creek. Alternatively, Devon Creek, at its sole discretion, may provide interim management.

If Devon Creek provides interim management, the franchisee's heirs or successors will be responsible for paying a fee. This fee is equal to the then-current interim management support fee, in addition to all costs of travel, lodging, meals, and other expenses reasonably incurred by Devon Creek. This arrangement is intended to continue until the franchise is transferred to the deceased or disabled individual's lawful heirs or successors.

This clause ensures that the Devon Creek business continues to operate smoothly during the transition period following the franchisee's death or disability. It also protects Devon Creek's interests by ensuring that the business is managed by someone they approve or by Devon Creek itself. The heirs or successors of the franchisee will need to be prepared to cover the costs associated with interim management, whether it's an interim manager they find or the fees and expenses charged by Devon Creek.

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.