What protection is provided to those who rely on Caring Transitions' certification regarding the Power of Attorney?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Anyone dealing with Franchisor shall be fully protected in acting and relying on Franchisor's certification that this Power of Attorney has not been revoked and is in full force and effect as of the date of such certification, and no Principal shall take any action against anyone who acts in reliance on such a certification or a copy of this Power of Attorney.
Any instrument or document executed by Franchisor on behalf of any Principal will be deemed to include such a certification by Franchisor, whether or not expressed.
This paragraph will survive the expiration of this Power of Attorney.
This Power of Attorney will expire on the twelfth anniversary of the date of the Franchise Agreement (indicated in paragraph C of the Preamble above).
The expiration of this Power of Attorney will not affect the validity of any act of Franchisor that occurred before the date of expiration.
This instrument is to be construed and interpreted as an irrevocable Power of Attorney coupled with an interest.
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, anyone dealing with Caring Transitions is protected when relying on the company's certification that the Power of Attorney is valid and in effect. Specifically, no principal (the person granting the power of attorney) can take action against someone who acts based on this certification or a copy of the Power of Attorney. This protection ensures that third parties can confidently engage with Caring Transitions, trusting in the validity of their actions under the Power of Attorney.
Furthermore, any document executed by Caring Transitions on behalf of a principal is considered to include this certification, whether it's explicitly stated or not. This provides an additional layer of assurance for those interacting with Caring Transitions, as the certification is automatically implied in their dealings. This clause remains in effect even after the Power of Attorney expires, safeguarding past actions taken in reliance on the certification.
The Power of Attorney itself expires 12 years from the date of the Franchise Agreement. However, the expiration does not invalidate any actions Caring Transitions took before the expiration date. This ensures continuity and protects the interests of all parties involved, even after the Power of Attorney's formal term concludes. The document emphasizes that this Power of Attorney is irrevocable and durable, remaining effective even if the principal becomes disabled or as time passes. Even the death of the principal does not revoke the power if Caring Transitions continues to act in good faith without knowledge of the death; in such cases, their actions remain binding on the principal's heirs and representatives.