Does the Mr. Sandless franchisee irrevocably appoint the franchisor as their agent?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee further agrees that this appointment constitutes a power coupled with an interest and is irrevocable until Franchisee has satisfied all of its obligations under the Franchise Agreement and any and all other agreements to which Franchisee and any of its affiliates on the one hand, and Franchisor and any of its affiliates on the other, are parties, including without limitation this Agreement.
Without limiting the generality of the foregoing, Franchisee hereby grants to Franchisor the power and right to do the following:
2.4.1 Direct the Internet Companies to transfer all Franchisee's interest in and to the Electronic Advertising and Telephone Listings to Franchisor, or alternatively, to direct the Internet Companies to terminate any or all of the Electronic Advertising and Telephone Listings;
2.4.2 Direct the Telephone Companies to transfer all Franchisee's interest in and to the Telephone Listings
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, the franchisee grants the franchisor an irrevocable power of attorney related to specific internet and telephone listings. Specifically, the franchisee agrees that this appointment is "a power coupled with an interest and is irrevocable until Franchisee has satisfied all of its obligations under the Franchise Agreement and any and all other agreements". This means that the franchisee cannot revoke this appointment until all obligations to Mr. Sandless are fulfilled.
Mr. Sandless is granted the power and right to direct Internet Companies to transfer the franchisee's interest in Electronic Advertising and Telephone Listings to Mr. Sandless or terminate these listings. Mr. Sandless can also direct Telephone Companies to transfer all the franchisee's interest in Telephone Listings.
This clause ensures that Mr. Sandless maintains control over its brand and online presence, even if a franchisee relationship ends. This is a fairly common practice in franchising, particularly for brands that rely heavily on online marketing and local telephone listings to generate leads for franchisees.
For a prospective Mr. Sandless franchisee, this means they will relinquish control over their local online presence (websites, social media, and phone listings) to the franchisor upon termination or at the franchisor's request. It is important for the franchisee to understand the implications of this transfer, especially if they have invested time and resources in building these online assets.