Under what circumstances can the Boulder Designs franchisor act as the franchisee's attorney-in-fact?
Boulder_Designs Franchise · 2025 FDDAnswer 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 Boulder Designs' 2025 Franchise Disclosure Document, the franchisor can act as the franchisee's attorney-in-fact under specific circumstances related to the termination or expiration of the franchise agreement. This means Boulder Designs has the power to execute documents and take actions on behalf of the franchisee if the franchisee fails or refuses to do so themselves.
Specifically, Boulder Designs can execute documents to discontinue the franchisee's use of the Boulder Designs name or any related names, cancel services related to the franchised business, and execute an assignment or sublease of the approved location. This provision is designed to ensure a smooth transition and protect the Boulder Designs brand and business interests when a franchise agreement ends.
This arrangement is an irrevocable appointment, meaning the franchisee cannot revoke the franchisor's power of attorney. It is triggered if the franchisee fails or refuses to take these necessary actions themselves. This clause is a significant consideration for prospective franchisees, as it grants Boulder Designs considerable authority over key aspects of the business upon termination or expiration of the franchise agreement.