Under what circumstances can Devon Creek Franchisor investigate a customer dispute?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee fails to resolve a dispute with a customer, for any reason whatsoever, Franchisor, in its sole discretion and for the sole purpose of protecting the goodwill and reputation of the System and the Marks, may (but shall not be obligated to) investigate the matter and take such action as Franchisor may deem necessary or appropriate to resolve the dispute fairly and promptly, including, but not limited to, the issuance of a refund on Franchisee's behalf.
Within ten (10) days after receiving notice thereof, Franchisee shall reimburse Franchisor for any amounts refunded to a customer on Franchisee's behalf. Franchisee hereby authorizes Franchisor to take payment of refunded amounts, at Franchisor's option, through electronic funds transfer or ACH payment. Nothing contained in this Section or any other provision of this Agreement shall be construed to impose liability upon Franchisor to any third party for any action by or obligation of Franchisee.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, Devon Creek may investigate customer disputes if the franchisee fails to resolve the dispute themselves. This action is at Devon Creek's discretion and is intended to protect the goodwill and reputation of the Devon Creek system and its marks.
If a franchisee is unable to resolve a customer's complaint, Devon Creek has the option to step in, investigate, and take action to resolve the dispute fairly and promptly. This may include issuing a refund to the customer on the franchisee's behalf.
If Devon Creek issues a refund to a customer, the franchisee is responsible for reimbursing Devon Creek for the refunded amount within ten days of receiving notice. Devon Creek is authorized to take payment for these refunds through electronic funds transfer or ACH payment. However, the FDD clarifies that Devon Creek is not liable to any third party for any action or obligation of the franchisee.