What is the Ledgers franchisee required to do to ratify the actions taken by the franchisor as attorney-in-fact?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, Franchisee hereby irrevocably appoints Franchisor as Franchisee's attorney-in-fact, to act in Franchisee's place, for the purpose of assigning any Listings. This appointment gives to us full power to receive, transfer or assign to us or our designee or take any other actions required of Franchisee under the Agreement. Franchisee grants Franchisor full authority to act in any manner proper or necessary to the exercise of the foregoing powers, including full power of substitution and execution or completion of any documents required or requested by any telephone or other company to transfer such Listings and Franchisee ratifies every act that Franchisor may lawfully perform in exercising those powers. This power of attorney shall be effective for a period of two (2) years from the date of expiration, cancellation or termination of Franchisee's rights under the Agreement for any reason. Franchisee declares this power of attorney to be irrevocable and renounces all rights to revoke it or to appoint another person to perform the acts referred to in this instrument. This power of attorney shall not be affected by the subsequent incapacity of Franchisee. This power is created to secure performance of a duty to Franchisor and is for consideration.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, as part of the franchise agreement, a franchisee irrevocably appoints Ledgers as their attorney-in-fact for assigning any Listings. This appointment grants Ledgers the authority to receive, transfer, or assign Listings to themselves or their designee, and to take any actions required of the franchisee under the agreement.
To ratify the actions taken by Ledgers as attorney-in-fact, the franchisee agrees that Ledgers has full authority to act in any manner necessary to exercise these powers. This includes executing or completing documents required by any telephone or other company to transfer such Listings. The franchisee, by agreeing to this appointment, essentially confirms and approves every lawful act that Ledgers may perform while acting as their attorney-in-fact.
This power of attorney is effective for two years following the expiration, cancellation, or termination of the franchisee's rights under the agreement. The franchisee declares this power of attorney to be irrevocable and waives their rights to revoke it or appoint another person to perform these actions. This power of attorney remains effective even if the franchisee becomes incapacitated, and it is created to ensure the franchisee fulfills their duties to Ledgers, with consideration provided for this arrangement.
In practical terms, this means that upon termination or expiration of the franchise agreement, Ledgers has the legal authority to manage and transfer the franchisee's Listings without requiring further consent or action from the franchisee. This ensures a smooth transition of these assets and protects Ledgers' interests. A prospective franchisee should understand the implications of granting such broad authority to Ledgers and how it may affect their business operations upon termination of the franchise agreement.