What actions are considered 'injurious or prejudicial to the goodwill' of the Face Foundrie system?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.2.1 Divert or attempt to divert any business or guest of any Face Foundrié Facial Bar or of any unit under the System to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks or the System.
Area Developer acknowledges and agrees that Area Developer shall be considered in default under this Agreement and that this Agreement will be subject to immediate termination as provided in Section 6.2 herein, in the event that a person in the immediate family (including spouse, domestic partner, parent or child) of Area Developer (or, if Area Developer is other than an individual, each Principal that is subject to these covenants) engages in a Competitive Business that would violate this Section 8.2.3 if such person was subject to the covenants of this Section 8.2.3.
A "Competitive Business" is any business includes any business operating or franchising an establishment (i) at which more than 10% of the offerings consists of facial services or beauty treatments for the face, or (ii) that offers waxing services.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, an Area Developer is prohibited from performing any act that is 'injurious or prejudicial to the goodwill associated with the Marks or the System.' Specifically, the Area Developer cannot divert or attempt to divert any business or guest of any Face Foundrié Facial Bar to any competitor through direct or indirect means.
This restriction is in place during the term of the Area Development Agreement. It aims to protect Face Foundrie's brand reputation and customer base by preventing franchisees from actions that could harm the business or steer customers towards competing establishments.
Additionally, the FDD states that the Area Developer will be considered in default and subject to immediate termination if a member of their immediate family engages in a Competitive Business. A Competitive Business includes any business where more than 10% of its offerings consist of facial services or beauty treatments for the face, or that offers waxing services. This clause ensures that the Area Developer and their close family members do not operate competing businesses that could damage Face Foundrie's goodwill.