factual

After termination of the Devon Creek franchise agreement, is the franchisee still responsible for the franchisor's attorney's fees related to enforcement?

Devon_Creek Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 18.1.5 pay to Franchisor all damages, costs and expenses, including reasonable attorneys' fees, incurred by Franchisor in connection with obtaining any remedy available to Franchisor for any violation of this Agreement and, subsequent to the termination or expiration of this Agreement, in obtaining injunctive or other relief for the enforcement of any provisions of this Agreement that survive its termination;

Source: Item 22 — CONTRACTS (FDD page 45)

What This Means (2024 FDD)

According to the 2024 Devon Creek Franchise Disclosure Document, a franchisee may be responsible for Devon Creek's attorney's fees after termination of the franchise agreement. Specifically, the franchisee is obligated to pay all damages, costs, and expenses, including reasonable attorneys' fees, that Devon Creek incurs to obtain remedies for any agreement violation. This obligation extends to obtaining injunctive or other relief to enforce any provisions of the agreement that survive its termination or expiration.

This means that even after a Devon Creek franchise is terminated, the franchisee could still face financial responsibility for legal costs if Devon Creek pursues legal action to enforce specific terms of the original agreement that remain in effect. These terms could include non-compete clauses, confidentiality agreements, or other stipulations designed to protect Devon Creek's interests.

For a prospective Devon Creek franchisee, this highlights the importance of fully understanding the franchise agreement and the potential long-term liabilities. It would be prudent to seek legal counsel to clarify which provisions survive termination and under what circumstances the franchisee could be liable for Devon Creek's legal fees even after the business relationship ends. This knowledge can help in making informed decisions and managing potential financial risks associated with the franchise.

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.