After termination or expiration of the Devon Creek Franchise Agreement, what are franchisees prohibited from doing regarding identifying themselves as a Devon Creek owner, franchisee, or licensee?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.1 Franchisee's Obligations. Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee shall immediately terminate and Franchisee and each Principal shall:
- 18.1.1 immediately cease to operate the Franchised Business, and shall not thereafter, directly or indirectly identify himself, herself or itself as a current Devon Creek owner, franchisee or licensee;
- 18.1.2 immediately and permanently cease to use the Marks, any imitation of any Mark, Franchisor's copyrighted material or other intellectual property, confidential or proprietary material or indicia of the Franchised Business, or use any trade name, trade or service mark or other commercial symbol that suggests a current or past association with Franchisor, Licensor, or the System. In particular, Franchisee shall cease to use, without limitation, all signs, billboards, advertising materials, displays, stationery, forms and any other articles, which display the Marks;
- 18.1.3 take such action as may be necessary to cancel any assumed name or equivalent registration that contains the Mark or any other service mark or trademark of Franchisor, and Franchisee shall furnish Franchisor with evidence of compliance with this obligation which is satisfactory to Franchisor, within ten (10) days after termination or expiration of this Agreement;
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, after the termination or expiration of the Franchise Agreement, a franchisee must immediately cease operating the franchised business. Furthermore, the franchisee is prohibited from directly or indirectly identifying themselves as a current Devon Creek owner, franchisee, or licensee. This restriction is put in place to protect the Devon Creek brand and prevent any confusion among customers regarding the affiliation of the business.
In addition to ceasing operations and refraining from identifying as a current franchisee, the franchisee must also immediately and permanently discontinue the use of Devon Creek's trademarks, copyrighted material, and other intellectual property. This includes refraining from using any trade name, service mark, or commercial symbol that suggests a current or past association with Devon Creek. Specifically, the franchisee must stop using all signs, billboards, advertising materials, displays, stationery, forms, and any other articles that display the Devon Creek marks.
Moreover, the franchisee is required to take necessary actions to cancel any assumed name or equivalent registration that contains the Devon Creek mark or any other service mark or trademark of the franchisor. Evidence of compliance with this obligation must be provided to Devon Creek within ten days after the termination or expiration of the Franchise Agreement. These measures ensure a clean break between the franchisee and the Devon Creek brand, safeguarding the franchisor's intellectual property and brand reputation.