factual

Can a Zoomin Groomin franchisee revoke the power of attorney granted to the franchisor?

Zoomin_Groomin Franchise · 2025 FDD

Answer 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 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)

What This Means (2025 FDD)

According to the 2025 Zoomin Groomin Franchise Disclosure Document, a franchisee irrevocably appoints Zoomin Groomin as their attorney-in-fact for assigning Listings, which include telephone numbers, advertisements, social media accounts, and websites, upon the expiration or termination of the Franchise Agreement. This appointment grants Zoomin Groomin full power to transfer or assign these Listings to themselves or their designee.

The power of attorney is effective for two years following the expiration, cancellation, or termination of the franchisee's rights under the agreement. The franchisee explicitly renounces all rights to revoke this power of attorney or appoint another person to perform these acts. Furthermore, the power of attorney remains effective even if the franchisee becomes incapacitated.

This arrangement ensures that Zoomin Groomin can maintain control over the brand's Listings and ensure a smooth transition of these assets upon a franchisee's exit. The franchisee's inability to revoke this power of attorney is a significant commitment, highlighting the importance of understanding the terms of the Franchise Agreement and the implications of granting such authority to Zoomin Groomin.

Given this condition, prospective franchisees should carefully consider the long-term implications of granting Zoomin Groomin this irrevocable power of attorney, especially concerning the control and management of their business listings upon termination or expiration of the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.