Upon termination of the Devon Creek Franchise Agreement, what must the franchisee immediately direct all Telephone Companies to do?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
one directory listings (collectively, the "Telephone Listings") related to the Franchised Business or the Marks.
- 2.3 Transfer. 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.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee is required to take specific actions regarding telephone listings. The franchisee must immediately direct all telephone companies, directory publishers, and listing agencies with whom they have telephone listings to either transfer all interest in those listings to Devon Creek or terminate the listings, based on Devon Creek's preference.
This obligation ensures that Devon Creek maintains control over its brand representation and customer access points, even after a franchise agreement ends. It prevents a former franchisee from potentially diverting customers or misrepresenting their affiliation with Devon Creek. The franchisee must also execute documents and take actions to effectuate the transfer or termination of the telephone listings.
Devon Creek also has the power of attorney to act on behalf of the franchisee to ensure these actions are completed. The telephone companies and internet providers only need a written statement from an officer or agent of Devon Creek to prove that the Franchise Agreement has been terminated. Once the transfer of interest has been completed, the franchisee has no further interest in or obligations with respect to the telephone listings, although they remain liable for any outstanding payments they incurred before the transfer.