Under what condition may Devon Creek place the purchase price in escrow?

According to Devon Creek's 2024 Franchise Disclosure Document, Devon Creek may place the purchase price in escrow if the franchisee has not obtained all required certificates and other documents at the time of closing. This is at Devon Creek's sole discretion.

This means that if a franchisee is selling their Devon Creek franchise back to the franchisor, they must provide all necessary documentation to finalize the sale. If these documents, such as warranties, releases of lien, bills of sale, and assignments, are not provided by the closing date, Devon Creek has the option to hold the purchase price in escrow until the franchisee fulfills these requirements.

This provision protects Devon Creek by ensuring they receive all necessary documentation to perfect their title and possession of the assets being purchased and to meet the requirements of all tax and government authorities. It also incentivizes the franchisee to provide the required documents promptly to receive the purchase price without delay. Escrow arrangements are common in business transactions to protect both parties until all conditions of the agreement are met.