For what purpose is Beggars Pizza Franchise, LLC appointed as the Assignor's attorney-in-fact?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Assignor will not suffer or permit any surrender, termination, amendment, or modification of the Lease without Assignee's prior written consent. Throughout the term of the Franchise Agreement and any renewals thereto, Assignor will elect and exercise all options to extend the term of or renew the Lease not less than thirty (30) days prior to the last day that the option must be exercised, unless Assignee otherwise agrees in writing. If Assignee does not otherwise agree in writing, and upon failure of Assignor to so elect to extend or renew the Lease as aforesaid, Assignor hereby appoints Assignee as Assignor's true and lawful attorney-infact to exercise such extension or renewal options in the name, place, and stead of Assignor for the purpose of effecting such extension or renewal.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, Beggars Pizza Franchise, LLC is appointed as the Assignor's attorney-in-fact for the purpose of extending or renewing the lease for the restaurant premises.
Specifically, if the Assignor (the franchisee) fails to elect to extend or renew the lease at least thirty (30) days prior to the deadline for exercising the option, and if Beggars Pizza does not agree otherwise in writing, Beggars Pizza has the power to act on behalf of the franchisee to ensure the lease is extended or renewed. This appointment as attorney-in-fact allows Beggars Pizza to protect its interest in maintaining the restaurant's location.
This provision ensures that the Beggars Pizza restaurant can continue operating at its location, even if the franchisee neglects to renew the lease. This protects the Beggars Pizza brand and prevents potential disruptions to the business. The franchisee retains the responsibility to manage the lease and must act in a timely manner to renew or extend it, unless they obtain written consent from Beggars Pizza otherwise.