Does the power of attorney granted to Aunt Millies Bakeries survive the termination of the agreement?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer 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 power of attorney granted to Aunt Millie's survives the termination of the agreement. Specifically, the distributor irrevocably grants Aunt Millie's a limited power of attorney, giving them the authority to transfer the distributor's rights or fulfill their obligations under the agreement.
This appointment of power of attorney remains in effect even after the distributor's death or disability, or after the termination of the Distribution Agreement. This means that Aunt Millie's retains the right to act on behalf of the distributor in specific matters, even if the agreement is no longer active.
For a prospective franchisee, this clause ensures that Aunt Millie's can manage the distribution rights effectively, even in unforeseen circumstances such as the franchisee's death, disability, or termination of the agreement. It also provides Aunt Millie's with a mechanism to ensure continued operation and transfer of distribution rights, which could be beneficial in maintaining the stability of the distribution network.