Will the terms of a Devon Creek Successor Franchise Agreement be the same as the original agreement?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.3 Notice Required by Law. If applicable law requires Franchisor to give notice to Franchisee prior to the expiration of the Term, this Agreement shall remain in effect on a month-to-month basis until Franchisor has given the notice required by such applicable law. If Franchisor is not offering new Devon Creek Franchise Group, LLC, is in the process of revising, amending or renewing Franchisor's form of franchise agreement or disclosure document, or Franchisor is not lawfully able to offer Franchisee the thencurrent form of Successor Franchise Agreement at the time Franchisee advises Franchisor pursuant to Paragraph 5.2 hereof that Franchisee desires to renew, Franchisor may, in Franchisor's sole discretion, (i) offer to renew this Agreement upon the same terms set forth herein for the appropriate successor term or (ii) offer to extend the Term hereof on a month-to-month basis following the expiration of the Term for as long as Franchisor deems necessary or appropriate so that Franchisor may lawfully offer the then current form of Successor Franchise Agreement. Any timeframes specified in this Paragraph 5 shall be inclusive of any state mandated notice periods.
- 5.4 Additional Reservation of Rights. Notwithstanding anything herein to the contrary, Franchisor reserves the right not to enter into a successor franchise agreement for this Franchise as a result of a decision to withdraw from the Territory in which Franchisee's Franchised Business is located.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, the terms of a Successor Franchise Agreement may not be the same as the original agreement. Devon Creek may be in the process of revising, amending, or renewing their franchise agreement or disclosure document. If Devon Creek is not lawfully able to offer a franchisee the then-current form of Successor Franchise Agreement at the time the franchisee advises that they want to renew, Devon Creek may, at its sole discretion, offer to renew the agreement upon the same terms set forth in the original agreement for the appropriate successor term.
Alternatively, Devon Creek can offer to extend the term on a month-to-month basis following the expiration of the term for as long as Devon Creek deems necessary or appropriate so that they may lawfully offer the then-current form of Successor Franchise Agreement.
Devon Creek also reserves the right not to enter into a successor franchise agreement for a franchise if they decide to withdraw from the territory where the franchisee's franchised business is located. To obtain more clarity on the specific terms and conditions of the Successor Franchise Agreement, a prospective franchisee should inquire directly with Devon Creek about the factors that determine the terms of renewal and the likelihood of changes in the agreement.