What is the purpose of the Irrevocable Power of Attorney mentioned in the Buns On Fire FDD?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| IRREVOCABLE POWER OF ATTORNEY |
|---|
| STATE OF |
| ) |
| ) |
| COUNTY OF |
| ) |
| KNOW ALL MEN BY THESE PRESENTS |
| That [], a [] [limited liability company / corporation] ("Franchisee"), does |
| hereby irrevocably constitute and appoint SMYA VENTURES LLC, an Illinois limited liability company |
| ("Franchisor"), true and lawful attorney-in-fact and agent for Franchisee and in Franchisee's name, place |
| and stead to do or cause to be done all things and to sign, execute, acknowledge, certify, deliver, accept, |
| record and file all such agreements, certificates, instruments and documents as, in the sole discretion of |
| Franchisor, shall be necessary or advisable for the sole purpose of obtaining any and all returns, records, |
| reports and other documentation relating to the payment of taxes filed by Franchisee with any state and/or |
| federal taxing authority, including, but not limited to, the State Comptroller of the State of , hereby granting |
| unto Franchisor full power and authority to do and perform any and all acts and things which, in the sole |
| discretion of Franchisor, are necessary or advisable to be done as fully to all intents and purposes as |
| Franchisee might or could itself do, hereby ratifying and confirming all that Franchisor may lawfully do or |
| cause to be done by virtue of this Power of Attorney and the powers herein granted. |
| During the term of this Power of Attorney, and regardless of whether Franchisee has designated |
| any other person to act as its attorney-in-fact and agent, no governmental agency, person, firm or |
| corporation dealing with Franchisor, if acting in good faith, shall be required to ascertain the authority of |
| Franchisor, nor to see to the performance of the agency, nor be responsible in any way for the proper |
| application of documents delivered or funds or property paid or delivered to Franchisor. Any governmental |
| agency, person, firm or corporation dealing with Franchisor shall be fully protected in acting and relying |
| on a certificate of Franchisor that this Power of Attorney on the date of such certificate has not been revoked |
| and is in full force and effect, and Franchisee shall not take any action against any person, firm, corporation |
| or agency acting in reliance on such a certificate or a copy of this Power of Attorney. Any instrument or |
| document executed on behalf of Franchisee by Franchisor shall be deemed to include such a certificate on |
| the part of Franchisor, whether or not expressed. This paragraph shall survive any termination of this Power |
| of Attorney. |
| This Power of Attorney shall terminate two (2) years following the expiration or termination of that |
| certain Franchise Agreement dated as of |
| by and between Franchisor and Franchisee. Such |
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the Irrevocable Power of Attorney grants SMYA VENTURES LLC (the Franchisor) the authority to act as the franchisee's (the attorney-in-fact) agent. This allows Buns On Fire to obtain returns, records, reports, and other documentation related to the franchisee's tax payments filed with state and/or federal taxing authorities. The Power of Attorney enables Buns On Fire to perform actions and execute documents necessary for this purpose, as determined solely by Buns On Fire.
This Power of Attorney remains in effect regardless of whether the franchisee has appointed another agent. Any third party dealing with Buns On Fire in good faith is not required to verify Buns On Fire's authority and is protected when relying on a certificate from Buns On Fire confirming the Power of Attorney's validity. The execution of any instrument or document by Buns On Fire on behalf of the franchisee is considered a certification of the Power of Attorney's validity.
The Irrevocable Power of Attorney is coupled with an interest and is governed by the laws of the state where it is executed and delivered. This Power of Attorney terminates two years after the expiration or termination of the Franchise Agreement between Buns On Fire and the franchisee. However, the termination does not invalidate any actions taken by Buns On Fire before the termination date under the powers granted.
For a prospective Buns On Fire franchisee, this means granting the franchisor significant control over access to their tax-related documents and filings. While the stated purpose is limited to obtaining tax information, franchisees should carefully consider the implications of granting such broad authority and understand the conditions under which it can be used and terminated. It is advisable to seek legal counsel to fully understand the scope and potential risks associated with this Irrevocable Power of Attorney.