factual

Does the Aunt Millies Bakeries agreement grant Aunt Millie's a power of attorney?

Aunt_Millies_Bakeries Franchise · 2025 FDD

Answer from 2025 FDD Document

  • §12.6 DESIGNATION AS AGENT: DISTRIBUTOR hereby irrevocably grants AUNT MILLIE'S a limited power of attorney with full and complete authority to transfer DISTRIBUTOR'S Distribution Rights, or perform any of DISTRIBUTOR'S obligations hereunder for DISTRIBUTOR'S account in accordance with the terms of this Agreement. This appointment shall survive the death or disability of DISTRIBUTOR or the termination of this Agreement.

Source: Item 23 — RECEIPT (FDD pages 44–196)

What This Means (2025 FDD)

According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the agreement does grant Aunt Millie's a limited power of attorney. Specifically, the distributor irrevocably grants Aunt Millie's the authority to transfer the distributor's rights or fulfill any obligations under the agreement on the distributor's behalf, according to the terms outlined in the agreement.

This appointment of power of attorney survives the death or disability of the distributor, as well as the termination of the agreement itself. This means that even if the distributor is no longer able to manage their business affairs or the agreement is terminated, Aunt Millie's retains the power to act on the distributor's behalf regarding the distribution rights.

For a prospective franchisee, this clause has significant implications. It provides Aunt Millie's with a mechanism to ensure business continuity and compliance with the agreement, even in adverse circumstances. However, it also means the distributor relinquishes some control over their business and rights, granting Aunt Millie's the power to make decisions and take actions on their behalf. It is important for a prospective franchisee to fully understand the scope and limitations of this power of attorney, and how it may affect their rights and obligations under the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.