What powers does Spray Net have as attorney-in-fact for the Franchisee regarding the Site?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Power of Attorney: Franchisee does hereby appoint irrevocably Franchisor as its true and lawful attorney-in-fact in its name and stead and hereby authorizes it, upon any default under the Lease or under the Franchise Agreement, with or without taking possession of the Site, to rent, lease, manage and operate the Site to any person, firm or corporation upon such terms and conditions in its discretion as it may determine, and with the same rights and powers and immunities, exoneration of liability and rights of recourse and indemnity as the Franchisor would have upon taking possession of the Site under the provisions set forth in the Lease.
The power of attorney conferred upon the Franchisor under this Assignment is a power coupled with an interest and cannot be revoked, modified or altered without the written consent of the Franchisor.
-
- Election of Remedies: It is understood and agreed that the provisions set forth in this Assignment are deemed a special remedy given to the Franchisor and are not deemed to exclude any of the remedies granted in the Franchise Agreement or any other agreement between the Franchisor and the Franchisee, but are deemed an additional remedy and shall be cumulative with the remedies therein and elsewhere granted to the Franchisor, all of which remedies are enforceable concurrently or successively.
No exercise by the Franchisor or any of the rights hereunder will cure, waiver or affect any default hereunder or default under the Franchise Agreement.
No inaction or partial exercise of rights by the Franchisor will be construed as a waiver of any of its rights and remedies and no waiver by the Franchisorof any such rights and remedies shall be construed as a waiver by the Franchisor of any future rights and remedies.
Franchisor is not required to exercise any of its rights set forth in Section 6 hereof, but shall havethe irrevocable right to do so.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the franchisee irrevocably appoints Spray Net as their attorney-in-fact. This appointment grants Spray Net the authority to act on behalf of the franchisee concerning the site under specific conditions.
Specifically, if the franchisee defaults on the lease or the Franchise Agreement, Spray Net has the power, with or without taking possession of the site, to rent, lease, manage, and operate the site. Spray Net can do so to any person, firm, or corporation, under terms and conditions it deems appropriate. This includes the same rights, powers, immunities, exoneration of liability, and rights of recourse and indemnity that Spray Net would have if it had taken possession of the site under the lease provisions.
This power of attorney is coupled with an interest, meaning it cannot be revoked, modified, or altered without Spray Net's written consent. This arrangement is considered a special remedy for Spray Net and does not exclude any other remedies granted in the Franchise Agreement or any other agreement between Spray Net and the franchisee. It serves as an additional remedy that can be enforced concurrently or successively with other remedies. Spray Net is not obligated to exercise these rights but has the irrevocable right to do so.
This clause gives Spray Net significant control over the franchise location in the event of a default by the franchisee, allowing Spray Net to protect its interests and maintain operations at the site. Prospective franchisees should carefully consider the implications of granting such broad powers to Spray Net, especially concerning their obligations under the lease and Franchise Agreement.