Is the power of attorney granted to Ledgers franchisor considered to be for consideration?
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, the power of attorney granted to the franchisor is indeed considered to be for consideration. Specifically, the franchise agreement stipulates that the franchisee irrevocably appoints Ledgers as their attorney-in-fact for the purpose of assigning any listings related to the franchise.
This appointment grants Ledgers the authority to manage and transfer these listings, which are critical for maintaining business continuity and client relationships, especially after the termination or expiration of the franchise agreement. The power of attorney is effective for two years following the termination, cancellation, or expiration of the franchisee's rights.
The document explicitly states that this power of attorney is created to secure the performance of a duty to Ledgers and is 'for consideration.' This means that the franchisee receives something of value in exchange for granting this power, which is typically the franchise opportunity itself and the associated benefits of being part of the Ledgers system. This ensures that Ledgers can protect its brand and client base by controlling the transfer of listings, which are essential for maintaining client relationships and business operations.