What is the timeframe for satisfying a final judgment before it constitutes a default for a Devon Creek franchisee?

According to Devon Creek's 2024 Franchise Disclosure Document, a franchisee is considered in material default if a final judgment against them remains unsatisfied of record for sixty days or longer. However, this default can be avoided if a supersedeas bond is filed.

This means that if a court issues a final judgment against a Devon Creek franchisee, they have 60 days to satisfy the judgment by paying the amount owed. If the franchisee does not pay within this period, it constitutes a default under the Franchise Agreement, potentially leading to termination of the agreement.

The inclusion of the supersedeas bond provision offers a way for the franchisee to prevent default while they appeal the judgment. A supersedeas bond is a type of surety bond that a party can obtain to stay the execution of a judgment while an appeal is pending. By filing this bond, the franchisee can prevent the judgment from being enforced during the appeal process, thus avoiding default under the franchise agreement. This is a fairly standard clause in franchise agreements, allowing franchisees a chance to appeal adverse judgments without immediately losing their franchise.