Does the Hyper Kidz franchisee grant the franchisor power of attorney?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) Assignment of Numbers and Listings.
At Franchisor's request, Franchisee shall execute such forms and documents as Franchisor deems necessary to appoint Franchisor its true and lawful attorney-in-fact, with full power and authority, for the sole purpose of assigning to Franchisor, Franchisee's telephone numbers and listings; and provide Franchisor with passwords and administrator rights for all email, software, social media or other such accounts used or created by Franchisee in order to operate the Franchised Business.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, under certain conditions, a franchisee is required to grant the franchisor power of attorney. Specifically, upon termination or expiration of the franchise agreement, Hyper Kidz may request the franchisee to execute documents that appoint Hyper Kidz as their attorney-in-fact.
This appointment of power of attorney is solely for the purpose of assigning the franchisee's telephone numbers and listings to Hyper Kidz. Additionally, the franchisee must provide Hyper Kidz with passwords and administrator rights for all email, software, social media, or other such accounts used or created by the franchisee to operate the franchised business.
This clause ensures that Hyper Kidz can maintain continuity and control over the brand's presence and customer communication channels even after a franchise agreement ends. It is a fairly standard practice in franchising to ensure a smooth transition and prevent any disruption in customer service or brand representation. However, franchisees should be aware of the extent and limitations of this power of attorney, ensuring it is strictly limited to the transfer of business-related contact information and online accounts.