What activities are Face Foundrie franchisee entities restricted to?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
ay change over time, that an investment in a Face Foundrié Facial Bar involves business risks, and that the success of the venture is largely dependent on Franchisee's own abilities, efforts and financial resources. Franchisee or its Owners shall truthfully fill out the Franchisee Acknowledgment attached hereto as Exhibit H.
1.03 Representations. Franchisee and its Owners, jointly and severally, represent and warrant to Franchisor that: (a) neither Franchisee nor any of its Owners have made any untrue statement of any material fact or has omitted to state any material fact in the written information submitted in obtaining the rights granted hereunder; (b) neither Franchisee nor any of its Owners have any direct or indirect legal or beneficial interest in any beauty-related business that may be deemed a Competitive Business, except as Franchisee has otherwise completely and accurately disclosed in writing to Franchisor in connection with obtaining the rights granted hereunder; and (c) the execution and performance of this Agreement will not violate any other agreement to which Franchisee or any of its Owners may be bound. Franchisee recognizes that Franchisor has executed this Agreement in reliance on all of the statements Franchisee and its Owners have made in writing in connection with this Agreement.
1.04 Certain Definitions. The terms listed below have the meanings which follow them and include the plural as well as the singular. Other terms are defined elsewhere in this Agreement in the context in which they arise.
(a) "Affiliate" Any Person that directly or indirectly owns or controls the referenced party, that is directly or indirectly owned or controlled by the referenced party, or that is under common control with the referenced party. The term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an Entity, whether through ownership of voting securities, by contract or otherwise.
(b) "Competitive Business" 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. Restrictions in this Agreement on competitive activities do not apply to: (i) the ownership or operation of other Face Foundrié Facial Bars that are licensed or franchised by Franchisor or any of its Affiliates; or (b) the ownership of shares of a class of securities that are listed on a public stock exchange or traded on the over-the-counter market and that represent less than five percent (5%) of that class of securities.
(c) "Confidential Information" Any information related to the System or the development and operation of Face Foundrié Facial Bars that Franchisor or any of its Affiliates discloses to Franchisee that is designated confidential or that by its nature would reasonably be expected to be held in confidence, including, without limitation: (i) equipment, products, supplies, standards, procedures, protocols, and methods of service execution; (ii) plans and specifications for the development of Face Foundrié Facial Bars; (iii) sales, marketing and advertising programs and techniques for Face Foundrié Facial Bars; (iv) identity of suppliers and knowledge of specifications, processes, procedures, equipment, and pricing; (v) knowledge of operating results and financial performance of Franchisor or any Face Foundrié Facial Bars, other than the Facial Bar and any other Face Foundrié Facial Bar owned by Franchisee or its Affiliates; (vi) methods of inventory control, product handling, training and management relating to Face Foundrié Facial Bars; (vii) computer systems, software programs and software applications used or useful in Face Foundrié Facial Bars; and (viii) any and all other information that Franchisor provides or makes available that is labeled proprietary or confidential or which by its nature or character would reasonably be expected to be required to be treated as confidential. All information that comprises the System including the information and data in the Operations Manual will be presumed to be Confidential Information of Franchisor.
(d) "Entity" A corporation, partnership, sole proprietorship, company, firm, limited liability company, joint venture, trust, business, association, organization, joint stock company, unincorporated organization, union, group acting in concert, governmental entity or other entity.
- (e) "Facial Bar" The Face Foundrié Facial Bar operated by Franchisee at the Premises.
(f) "Salon Manager" means any person designated pursuant to this Agreement to manage the day-to-day on-site operations of your Facial Bar.
(g) "Gross Sales" means the amount of products and merchandise sold or services rendered in, on, about or from the Facial Bar, together with any other revenues derived from the operation of the Facial Bar, whether by Franchisee or by any other person, whether or not in accordance with the terms of the Franchise Agreement, and whether for cash or on a charge, credit, barter or time basis, including all sales and services (i) where orders originate and/or are accepted by Franchisee in the Facial Bar but delivery or performance thereof is made by you from or at any place other than the Facial Bar or (ii) by digital, telephone or other similar orders received or filled at or in the Facial Bar. For purposes of determining the Royalty Fee, Marketing Contribution, and local marketing, there shall be deducted from Gross Sales: (a) the amount of refunds, allowances or discounts to customers (including coupon sales), provided the related sales have previously been included in Gross Sales; and (b) the amount of any excise or sales tax levied upon retail sales and paid over to the appropriate governmental authority.
(h) "Immediate Family" Spouse, parents, brothers, sisters and children, whether natural or adopted.
(i) "Internet" All communications between computers and between computers and television, phone, facsimile and similar communications devices, including the World Wide Web, proprietary online services, social media, digital applications, E-mail, news groups and electronic bulletin boards.
(j) "Operating Partner" Any individual Franchisee so designates in Exhibit B and any replacement thereof approved by Franchisor, as more fully described in this Agreement.
(k) "Operations Manual" Franchisor's confidential operations manual, as amended from time to time, which may consist of one or more manuals containing Franchisor's mandatory and suggested standards, specifications and operating procedures relating to the development and operation of Face Foundrié Facial Bars and other information relating to Franchisee's obligations under this Agreement. The term "Operations Manual" includes alternative or supplemental means of communicating such information by other media which specifically reference that they are to be considered part of the Operations Manual, including items that may be posted on the cloud, Internet or an extranet, bulletins, e-mails, and computer drives.
(l) "Owner" Each Person that has a direct or indirect legal or beneficial ownership interest in Franchisee, if Franchisee is an Entity.
- (m) "Person" An individual or an Entity.
(n) "Personnel" All persons employed or engaged by Franchisee in connection with the development, management or operation of the Facial Bar and all other persons who work in or for the Facial Bar.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees face several restrictions regarding their business activities. Franchisees cannot have any undisclosed direct or indirect legal or beneficial interest in any beauty-related business that may be deemed a Competitive Business. A Competitive Business is defined as any business operating or franchising an establishment where more than 10% of its offerings consist of facial services or beauty treatments for the face, or that offers waxing services. However, these restrictions do not apply to the ownership or operation of other Face Foundrié Facial Bars that are licensed or franchised by Face Foundrie or its affiliates, or the ownership of less than 5% of a class of securities listed on a public stock exchange.
Face Foundrie franchisees are also restricted from disclosing or using any Confidential Information related to the System, except as required to fulfill their obligations under the Franchise Agreement or with Face Foundrie's express written approval. This includes information about equipment, products, supplies, standards, procedures, protocols, methods of service execution, plans and specifications for the development of Face Foundrié Facial Bars, sales, marketing and advertising programs, supplier identities, operating results, inventory control methods, computer systems, and any other information labeled as proprietary or confidential. All information within the Operations Manual is presumed to be Confidential Information of Face Foundrie.
Furthermore, franchisees must operate their Facial Bar according to Face Foundrie's specifications, methods of service execution, and sales, marketing, and advertising programs, unless they obtain prior written consent from Face Foundrie. They must also ensure that the Facial Bar is always under the direct, on-site supervision of someone who has successfully completed Face Foundrie's training programs. Franchisees are required to participate in all national, regional, or local advertising and promotional activities that Face Foundrie requires, including honoring promotions like discount coupons, certificates, and gift cards. They must also become and remain members in good standing of any purchasing or distribution cooperative designated by Face Foundrie and maintain contracts with third-party service programs for customer service, mystery shopping, or client safety, as specified by Face Foundrie.
These restrictions ensure that Face Foundrie franchisees operate within a defined framework that protects the brand's confidential information, maintains service quality, and promotes consistent marketing efforts. Prospective franchisees should carefully consider these limitations to understand the scope of their operational autonomy and the extent to which they must adhere to Face Foundrie's standards and directives.