What is the nature of the power of attorney granted by the tenant to Angry Chickz regarding the lease?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
If Company or its designee elects to succeed to Tenant's rights under the Lease, Tenant shall assign to Company or such designee all of its right, title and interest in and to the Lease.
Upon such assignment, Landlord shall attorn to Company or such designee as the tenant under the Lease.
Tenant shall execute and deliver to Company or such designee such assignment and take such further action as Company or such designee, may deem necessary or advisable to effect such assignment, upon demand, Company or such designee shall be, and hereby is, appointed Tenant's attorney in fact to execute such assignment and/or take further action in Tenant's name and on its behalf.
This power of attorney granted by Tenant to Company and such designee is a special power of attorney coupled with an interest and is irrevocable and shall survive the death or disability of Tenant.
Any sum expended by Company or such designee to cure Tenant's default of the Lease shall be deemed additional sums due Company and Tenant shall pay such amount to Company upon demand.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the tenant (franchisee) grants Angry Chickz a special power of attorney related to the lease agreement. This power of attorney enables Angry Chickz or its designee to act on behalf of the franchisee in specific situations concerning the lease.
Specifically, if Angry Chickz or its designee elects to assume the franchisee's rights under the lease, the franchisee is obligated to assign all rights, title, and interest in the lease to Angry Chickz or its designee. To facilitate this, the franchisee must execute and deliver the assignment and take any further actions deemed necessary by Angry Chickz. If the franchisee fails to do so, Angry Chickz is appointed as the franchisee's attorney in fact to execute the assignment and take further action in the franchisee's name.
This power of attorney is "coupled with an interest" and is irrevocable, meaning it cannot be canceled and remains in effect even if the franchisee dies or becomes disabled. This ensures that Angry Chickz can secure the lease if they choose to, protecting their interest in maintaining the location for an Angry Chickz restaurant. Any costs Angry Chickz incurs to cure a franchisee's default under the lease are considered additional sums owed by the franchisee to Angry Chickz upon demand.