Can the Buns On Fire Irrevocable Power of Attorney be revoked by the franchisee?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
5.9 Set Off Option
Franchisor may set off against any money owed by Franchisor or Franchisor's Affiliate(s) to Franchisee or Franchisee's Affiliate(s) pursuant to this Agreement or otherwise. This right to set off will continue until Franchisee has paid, satisfied or discharged all monies, debts or liabilities due or owing to Franchisor and Franchisor's Affiliates. Franchisee hereby irrevocably authorizes Franchisor or Franchisor's Affiliate to deduct from any monies payable by Franchisor or Franchisor's Affiliate to Franchisee or Franchisee's Affiliate(s) pursuant to this Agreement or otherwise any monies due or owing to Franchisor or Franchisor's Affiliates by Franchisee or Franchisee's Affiliate from time to time. If in Franchisee's jurisdiction set-off is not possible due to the local laws Franchisor or Franchisor's Affiliate(s) will hold
monies due to Franchisee or Franchisee's Affiliate as a lien, free from interest, until such time as Franchisee or Franchisee's Affiliate(s) have paid all monies owed by Franchisee or Franchisee's Affiliate to Franchisor or Franchisor's Affiliate(s).
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the franchisee's ability to revoke the Irrevocable Power of Attorney for Buns On Fire is not addressed within the provided excerpts. However, the document does mention an "irrevocable" authorization related to the franchisor's ability to set off debts.
Specifically, the FDD states that Buns On Fire has the right to "set off against any money owed by Franchisor or Franchisor's Affiliate(s) to Franchisee or Franchisee's Affiliate(s) pursuant to this Agreement or otherwise." The document further specifies that "Franchisee hereby irrevocably authorizes Franchisor or Franchisor's Affiliate to deduct from any monies payable by Franchisor or Franchisor's Affiliate to Franchisee or Franchisee's Affiliate(s) pursuant to this Agreement or otherwise any monies due or owing to Franchisor or Franchisor's Affiliates by Franchisee or Franchisee's Affiliate from time to time."
This "irrevocable" authorization means that the franchisee cannot prevent Buns On Fire from deducting money owed to them from any payments Buns On Fire owes to the franchisee. This clause protects Buns On Fire by ensuring they can recover debts from franchisees without needing additional consent for each deduction. A prospective franchisee should seek clarification from Buns On Fire regarding the specific terms and conditions under which this set-off option can be exercised, as well as the circumstances under which the Irrevocable Power of Attorney can be revoked.