When does the term of each Devon Creek Successor Franchise Agreement commence?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
The term of each such Successor Franchise Agreement shall commence upon the date of expiration of the immediately preceding term.
Franchisee shall
be charged a successor agreement fee of 10% of the then current initial franchise fee herein referred to as the ("Successor Agreement Fee").
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, a franchisee has the option to enter into a new franchise agreement after the initial term expires. These new agreements are called "Successor Franchise Agreements." The term for each of these successor agreements begins immediately after the expiration date of the term that came right before it.
Each additional term for the Successor Franchise Agreement is five years. To exercise the successor option, a franchisee must adhere to the terms and conditions outlined in the current franchise agreement and any other agreements typically used by Devon Creek at that time. These agreements must be in the form generally offered to prospective franchisees in the state where the territory is located.
In addition to other requirements, the franchisee must pay a Successor Agreement Fee. This fee is 10% of the then-current initial franchise fee. This means that the cost to renew the franchise agreement will depend on what Devon Creek is charging new franchisees at the time of renewal.