Does the Devon Creek Franchise Agreement specify that the power of attorney is coupled with an interest?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee further agrees that this appointment constitutes a power coupled with an interest and is irrevocable until Franchisee has satisfied all of its obligations under the Franchise Agreement and any and all other agreements to which Franchisee and any of its affiliates on the one hand, and Franchisor and any of its affiliates on the other, are parties, including without limitation this Agreement.
Without limiting the generality of the foregoing, Franchisee hereby grants to Franchisor the power and right to do the following:
2.4.1 Direct the Internet and Software Companies to transfer all Franchisee's interest in and to the Electronic Advertising and Software to Franchisor, or alternatively, to direct the Internet and Software Companies to terminate any or all of the Electronic Advertising and Software;
2.4.2 Direct the Telephone Companies to transfer all Franchisee's interest in and to the Telephone Listings to Franchisor, or alternatively, to direct the Telephone Companies to terminate any or all
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, the Franchise Agreement stipulates that the appointment of power of attorney is coupled with an interest. Specifically, the franchisee grants Devon Creek the power to manage the franchisee's internet advertising, software, and telephone listings.
This appointment is irrevocable until the franchisee has fulfilled all obligations outlined in the Franchise Agreement and any other agreements between the franchisee (or its affiliates) and Devon Creek (or its affiliates). This includes, but is not limited to, the current agreement.
Devon Creek is granted the authority to direct Internet and Software Companies to transfer the franchisee's interests in electronic advertising and software to Devon Creek or terminate these services. Similarly, Devon Creek can instruct Telephone Companies to transfer the franchisee's interest in telephone listings to Devon Creek or terminate those listings. This ensures Devon Creek can control these assets if the franchisee does not meet their contractual obligations.