After an Event of Default, what powers does the Secured Party have as attorney-in-fact for Big O Tires?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
addresses, social media accounts and websites, and all trade and similar name registrations and business licenses, and to cancel any interest which Franchisee may have in the same. Big O is hereby appointed as the Franchisee's attorney-in-fact for such purpose and such power, being coupled with an interest, shall be irrevocable;
- (f) Cease to use in Advertising, or in any manner whatsoever, any methods, procedures, or techniques associated with the Big O System in which Big O has a proprietary right, title, or interest; cease to use the Licensed Marks, and any other marks and indicia of operation associated with the Big O System and remove or change all Trade Dress, Products and Services, and other indicia of operation under the Big O System from the Premises, at Franchisee's expense and in a manner satisfactory to Big O.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, in the event of a default, Big O Tires is appointed as the franchisee's attorney-in-fact with specific powers related to the franchise's online presence and branding. This appointment is irrevocable because it is coupled with an interest.
Specifically, Big O Tires, acting as the attorney-in-fact, can take control of the franchisee's domain names, email addresses, social media accounts, and websites associated with the Big O Tires brand. They can also cancel any interest the franchisee has in these online assets, as well as trade name registrations and business licenses. This ensures that after termination, the franchisee cannot continue to operate online or represent themselves as part of the Big O Tires system.
Additionally, Big O Tires can enforce the franchisee's obligation to cease using any methods, procedures, or techniques associated with the Big O system, including licensed marks and other indicia of operation. The franchisee must remove or change all trade dress, products, services, and other operational indicators associated with Big O Tires from the premises at the franchisee's own expense and to Big O Tires' satisfaction. This prevents any continued association with the brand after the franchise agreement ends.