factual

Is the Boulder Designs power of attorney affected by the Franchisee's later incapacity?

Boulder_Designs Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor may, if Franchisee fails or refuses to do so, execute in Franchisee's name and on Franchisee's behalf any and all documents necessary to: cause discontinuation of Franchisee's use of the name Boulder Designs or any other related or similar name or use thereunder; cancellations of services related to the Franchised Business; the execution of an assignment or sublease of the Approved Location; and Franchisor is hereby irrevocably appointed by Franchisee as Franchisee's Attorney In Fact to do so.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to the 2025 Boulder Designs Franchise Disclosure Document, Boulder Designs, as the Franchisor, is appointed as the Franchisee's Attorney In Fact. Specifically, Section 17.8 states that if the Franchisee fails or refuses to execute documents necessary for discontinuing the use of the Boulder Designs name, canceling services, or assigning the Approved Location, Boulder Designs can act on the Franchisee's behalf.

This appointment is made to ensure a smooth transition and protect Boulder Designs's brand and system in the event of a franchisee's non-compliance after termination or expiration of the franchise agreement. The power of attorney allows Boulder Designs to take necessary actions to maintain consistency and prevent misuse of its trademarks and operational systems.

The FDD excerpt does not explicitly address whether the power of attorney is affected by the franchisee's later incapacity. It only specifies that the appointment is irrevocable. A prospective franchisee should seek clarification from Boulder Designs regarding the implications of their incapacity on this power of attorney. It would be prudent to understand if the power of attorney remains valid, or if alternative arrangements need to be made in such circumstances.

In general, powers of attorney can be durable or non-durable. A durable power of attorney remains effective even if the principal (franchisee) becomes incapacitated, while a non-durable power of attorney terminates upon the principal's incapacity. The Boulder Designs FDD does not specify which type of power of attorney is granted to the franchisor. Therefore, it is essential for a prospective franchisee to clarify this point to fully understand the scope and limitations of the power of attorney.

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.