Can the Devon Creek franchisee's affiliated companies be subject to the power of attorney?
Devon_Creek Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.5 Social Media Use. Franchisee may not maintain any business profile on Facebook, Instagram, TikTok, Twitter, LinkedIn, YouTube or any other social media and/or networking site except in strict accordance with Franchisor's requirements, as follows:
- 13.5.1 Franchisee shall provide Franchisor with all passwords and administrative rights to any and all social media accounts for the Franchised Business, and Franchisee hereby appoints Franchisor its true and lawful agent and attorney-in-fact with full power and authority, for the sole purpose of taking whatever action as is necessary for the best interest of the System, if Franchisee fails to maintain such accounts in accordance with Franchisor's standards.
Source: Item 22 — CONTRACTS (FDD page 45)
What This Means (2024 FDD)
According to the 2024 Devon Creek Franchise Disclosure Document, a franchisee must provide Devon Creek with all passwords and administrative rights to any and all social media accounts for the franchised business. Furthermore, the franchisee appoints Devon Creek as their "true and lawful agent and attorney-in-fact with full power and authority, for the sole purpose of taking whatever action as is necessary for the best interest of the System, if Franchisee fails to maintain such accounts in accordance with Franchisor's standards."
This means that Devon Creek has the power of attorney to act on behalf of the franchisee regarding their social media accounts if the franchisee fails to meet Devon Creek's standards. This power is specifically limited to actions necessary for the best interest of the Devon Creek system regarding social media accounts.
This clause gives Devon Creek significant control over the franchisee's online presence and marketing efforts. While this is intended to protect the brand and ensure consistency across the system, it also places a responsibility on Devon Creek to act in the franchisee's best interest when managing their social media. Franchisees should ensure they understand Devon Creek's social media standards and maintain their accounts accordingly to avoid intervention by the franchisor.