Upon termination of the Devon Creek Franchise Agreement, what must the franchisee immediately direct all Internet and Software Companies to do?
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
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 has specific obligations regarding internet and software companies. The franchisee must immediately direct all internet service providers, domain name registries, internet search engines, other listing agencies, and software companies (collectively, the "Internet and Software Companies") to take certain actions.
Specifically, the franchisee must instruct these Internet and Software Companies to either transfer all of the franchisee's interest in Electronic Advertising and Software to Devon Creek or, if Devon Creek does not desire to accept such Electronic Advertising and Software, to terminate it. The franchisee is also obligated to ensure that these companies execute the necessary documents and actions to effectuate the transfer or termination as directed by Devon Creek.
This requirement ensures that Devon Creek maintains control over its brand's online presence and marketing materials even after a franchise agreement ends. It prevents a former franchisee from continuing to use the Devon Creek brand to promote a competing business or otherwise benefit from the goodwill associated with the brand. The franchisee remains liable to the Internet and Software Companies for any outstanding payments or obligations incurred before the transfer or termination was accepted by Devon Creek.