Can the power of attorney granted to Creative World School be revoked by the franchisee?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
Power of Attorney: The Franchisee does hereby appoint irrevocably the Franchisor as its true and lawful attorney-in-fact in its name and stead and hereby authorizes it, upon any default under the Lease or under the Franchise Agreement, with or without taking possession of the Site, to rent, lease, manage and operate the Site to any person, firm or corporation upon such terms and conditions in its discretion as it may determine, and with the same rights and powers and immunities, exoneration of liability and rights of recourse and indemnity as the Franchisor would have upon taking possession of the Site pursuant to the provisions set forth in the Lease.
The power of attorney conferred upon the Franchisor pursuant to this Assignment is a power coupled with an interest and cannot be revoked, modified or altered without the written consent of the Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
According to the 2025 Creative World School Franchise Disclosure Document, the power of attorney granted to the franchisor is irrevocable. The franchisee appoints Creative World School as their attorney-in-fact, authorizing them to manage and operate the site upon any default under the lease or Franchise Agreement. This includes the ability to rent, lease, and manage the site under terms Creative World School deems appropriate.
This power of attorney is coupled with an interest, meaning it is tied to the franchisor's stake in the successful operation of the franchise. As such, the power of attorney cannot be revoked, modified, or altered by the franchisee without the written consent of Creative World School. This provision is designed to protect Creative World School's investment and ensure the continuity of the business, especially in situations where the franchisee is in default.
The FDD also states that this power of attorney is a special remedy for Creative World School and does not exclude any other remedies granted in the Franchise Agreement. This means that Creative World School has multiple avenues for recourse in case of a franchisee's default, and the power of attorney is just one of them. The franchisor can exercise these remedies concurrently or successively.
For a prospective franchisee, this clause signifies a significant commitment. It underscores the importance of adhering to the terms of the lease and Franchise Agreement to avoid triggering the power of attorney. It also highlights the need for careful consideration of the franchise agreement and seeking legal counsel to fully understand the implications of granting such an irrevocable power of attorney.