Is the Power of Attorney granted to Caring Transitions affected by the disability of the Principal?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
This Power of Attorney is a durable Power of Attorney and shall not be affected by the disability of any Principal or the lapse of time.
The death of a Principal shall not revoke the power, authority or acts and actions of Franchisor who, without knowledge of the Principal's death, continues to act in good faith under this Power of Attorney, and any such actions so taken shall inure to the benefit of and be binding upon the Principal's heirs, successors, personal representatives and assigns.
Source: Item 23 — RECEIPT (FDD pages 49–202)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the Power of Attorney granted to the Franchisor is not affected by the disability of the Principal. The document specifies that the Power of Attorney is durable and remains valid even if the Principal becomes disabled. This is designed to ensure that Caring Transitions can continue to manage and protect its trademarks and business interests, even if the franchisee (Principal) is incapacitated.
This provision offers a level of security for Caring Transitions, ensuring business continuity. It allows Caring Transitions to act on behalf of the franchisee without interruption, which is particularly important for maintaining brand consistency and operational standards. The Power of Attorney also survives the death of the Principal if Caring Transitions continues to act in good faith without knowledge of the Principal's death; in such a case, any actions taken by Caring Transitions will benefit and bind the Principal's heirs, successors, personal representatives, and assigns.
This type of durable Power of Attorney is not uncommon in franchise agreements, especially where brand standards and uniformity are critical. It allows the franchisor to step in and manage aspects of the business if the franchisee is unable to do so, protecting the overall network's interests. Prospective Caring Transitions franchisees should understand the scope of this Power of Attorney and how it might affect their business operations in the event of disability or death.