Under the Ledgers franchise agreement, what is the purpose of the franchisee irrevocably appointing 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 the 2025 Ledgers Franchise Disclosure Document, franchisees irrevocably appoint Ledgers as their attorney-in-fact for the purpose of assigning any Listings. Listings refer to telephone numbers, listings, and advertisements related to the franchise. This appointment grants Ledgers the authority to receive, transfer, or assign these Listings to themselves or their designee, or to take any actions required of the franchisee under the agreement.
Ledgers is granted full authority to act in any manner necessary to exercise these powers, including executing documents required by telephone or other companies to transfer the Listings. This power of attorney becomes effective upon the expiration, cancellation, or termination of the franchisee's rights under the agreement, and remains in effect for two years following such termination. The power of attorney is irrevocable, meaning the franchisee cannot revoke it or appoint another person to perform these actions.
This arrangement ensures that Ledgers maintains control over the Listings associated with the franchise, even after the franchise agreement ends. This is particularly important for maintaining brand consistency and ensuring a smooth transition of customer contacts and advertising efforts. The franchisee waives their rights to these Listings upon termination, allowing Ledgers to manage them as they see fit.
This appointment as attorney-in-fact is designed to secure the franchisee's duty to transfer the Listings to Ledgers and is supported by consideration, meaning something of value is exchanged for this power. This ensures that Ledgers can effectively manage and reassign the Listings to another franchisee or take other actions to maintain the brand's presence in the market.