Does Creative World School's power of attorney exclude other remedies available to them?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Exercise of Remedies: In any case of default by the Franchisee under the terms of the Lease or under the Franchise Agreement, the Franchisor shall be entitled to exercise any one or more of the following remedies in its sole discretion:
(a) to take possession of the Site, or any part thereof, personally, or by its agents or attorneys;
(b) to, in its discretion, without notice and with or without process of law, enter upon and take and maintain possession of all or any part of the Site, together with all furniture, fixtures, inventory, books, records, papers and accounts of the Franchisee;
(c) to exclude the Franchisee, its agents or employees from the Site;
(d) as attorney-in-fact for the Franchisee, or in its own name, and under the powers herein granted, to hold, operate, manage and control the School and conduct the business, if any, thereof, either personally or by its agents, with full power to use such measures, legally rectifiable, as in its discretion may be deemed proper or necessary to cure such default, including actions of forcible entry or detainer and actions in distress of rent, hereby granting full power and authority to the Franchisor to exercise each and every of the rights, privileges and powers herein granted at any and all times hereafter;
(e) to cancel or terminate any unauthorized agreements or subleases entered into by the Franchisee, for any cause or ground which would entitle the Franchisor to cancel the same:
(f) to disaffirm any unauthorized agreement, sublease or subordinated lien, to make all necessary or proper repairs, decorating, renewals, replacements, alterations, additions, betterments and improvements to the Site or the Site that may seem judicious, in the sole discretion of the Franchisor; and
(g) to insure and reinsure the same for all risks incidental to the Franchisor's possession, operation and management thereof; and/or
(h) notwithstanding any provision of the Franchise Agreement to the contrary, to declare all of the Franchisee's rights but not obligations under the Franchise Agreement to be immediately terminated as of the date of the Franchisee's default under the Lease.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, in the event of a default by the franchisee under the terms of the lease or the Franchise Agreement, Creative World School has the right to act as the franchisee's attorney-in-fact. This allows Creative World School to manage and control the school and its business operations, using measures deemed necessary to address the default. These measures can include actions of forcible entry or actions in distress of rent. The power of attorney granted to Creative World School enables them to exercise these rights and powers at any time.
Specifically, Creative World School can take possession of the site, including all furniture, fixtures, inventory, books, records, and accounts. They can also exclude the franchisee, its agents, or employees from the site. Additionally, Creative World School has the authority to cancel or terminate any unauthorized agreements or subleases entered into by the franchisee and to make necessary repairs, alterations, and improvements to the site. They can also insure and reinsure the site for risks associated with their possession and management.
However, the FDD does not explicitly state whether this power of attorney excludes other remedies available to Creative World School. It is important to note that the remedies listed are options available to Creative World School at its discretion, and the document does not specify that these are the only remedies they can pursue. A prospective franchisee should seek clarification from Creative World School regarding whether the exercise of power of attorney limits their ability to pursue other legal or equitable remedies.
Furthermore, the franchisee should consult with a legal professional to fully understand the implications of granting Creative World School power of attorney and how it might affect their rights and obligations under the Franchise Agreement and any related lease agreements. Understanding the full scope of available remedies and any limitations is crucial for making an informed decision about investing in a Creative World School franchise.