Upon termination of the Devon Creek Franchise Agreement, what must the franchisee do with their Electronic Advertising and Software?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:
- 2.3.1 direct all internet service providers, domain name registries, internet search engines, other listing agencies and software companies (collectively, the "Internet and Software Companies") with which Franchisee has Electronic Advertising and Software: (i) to transfer all of Franchisee's interest in such Electronic Advertising and Software to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer.
In the event Franchisor does not desire to accept any or all such Electronic Advertising and Software, Franchisee will immediately direct the Internet and Software Companies to terminate such Electronic Advertising and Software or will take such other actions with respect to the Electronic Advertising and Software as Franchisor directs; and
- 2.3.2 direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which Franchisee has Telephone Listings: (i) to transfer all Franchisee's interest in such Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer.
In the event Franchisor does not desire to accept any or all such Telephone Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Listings or will take such other actions with respect to the Telephone Listings as Franchisor directs.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to Devon Creek's 2024 Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee is obligated to transfer all rights and interests in their Electronic Advertising and Software to Devon Creek. This includes directing internet service providers, domain name registries, internet search engines, other listing agencies, and software companies to transfer all interests in the Electronic Advertising and Software to Devon Creek and to execute any necessary documents for the transfer.
However, if Devon Creek does not want to accept the Electronic Advertising and Software, the franchisee must direct the Internet and Software Companies to terminate the Electronic Advertising and Software or take other actions as directed by Devon Creek. This ensures that the franchisee no longer uses or controls any online presence associated with the Devon Creek brand after the agreement ends.
Devon Creek also has the power of attorney to act on behalf of the franchisee to ensure these transfers or terminations are completed. After the transfer of the Electronic Advertising and Software, the franchisee will have no further interest in or obligations related to it, except for payments the franchisee owes for obligations incurred before Devon Creek accepted the transfer.