factual

What is the 'Addendum' referring to in the Face Foundrie franchise agreement?

Face_Foundrie Franchise · 2025 FDD

Answer from 2025 FDD Document

on-renewal of a franchise agreement are set | | forth in Section 19 and 20 of the Illinois Franchise Disclosure Act. | | YOUR FAILURE TO COMPLETE THE INITIAL TRAINING PROGRAM ASSOCIATED |

[Signature page follows.]

WITH THIS FRANCHISE OPPORTUNITY TO THE FRANCHISOR'S SATISFACTION, CAN RESULT

IN YOUR FRANCHISE BEING TERMINATED AND LOSS OF YOUR INVESTMENT.

IN WITNESS WHEREOF, each of the undersigned has executed this Agreement under seal as of the Effective Date.

FACE FOUNDRIÉ (IF ENTITY): FRANCHISING L.L.C. [Name] By: Name: Title: Date: (IF INDIVIDUALS): [Signature] [Print Name] [Signature] [Print Name] Date:

ADDENDUM TO THE FRANCHISE AGREEMENT FOR USE IN MARYLAND

THIS ADDENDUM (the "Addendum") is made and entered into by and between FACE FOUNDRIÉ FRANCHISING L.L.C., a Minnesota limited liability company ("Franchisor") with its
principal
business
address
at
6446
Flying
Cloud
Drive,
Eden
Prairie,
Minnesota
55344,
and
, a ("Franchisee"), whose principal
business address is
1.
BACKGROUND. Franchisor and Franchisee are parties to that certain Franchise Agreement
dated, 20 (the "Franchise Agreement"). This Addendum is annexed to
and forms part of the Franchise Agreement. This Addendum is being signed because
(a) the Facial Bar that
Franchisee will operate under the Franchise Agreement will be located in Maryland; and/or (b) any of the
offering or sales activity relating to the Franchise Agreement occurred in Maryland.
2.
RELEASES. The following is added to the end of Sections 13.02 and 15.03 of the Franchise
Agreement:
Any release required as a condition of renewal, sale and/or assignment/transfer will not apply
to
any claims or liability arising under the Maryland Franchise Registration and Disclosure
Law.
3.
INSOLVENCY.
The following sentence is added to the end of Section 14.02
of the
Franchise Agreement:
Section 14.02 may not be enforceable under federal bankruptcy law (11 U.S.C. Sections 101
et seq.).
4.
FORUM FOR LITIGATION. The following language is added to the end of Section 18.04
of the Franchise Agreement:
Franchisee may bring an action in Maryland for claims arising under the Maryland Franchise
Registration and Disclosure Law.
5.
GOVERNING LAW. The following statement is added at the end of Section 19.04 of the
Franchise Agreement:
Notwithstanding the foregoing, the Maryland Franchise Registration and Disclosure Law shall
govern any claim arising under that law.
6.
LIMITATION OF CLAIMS. The following is added to the end of Section
18.06 of the
Franchise Agreement:
Franchisee must bring any claims arising under the Maryland Franchise
Registration and Disclosure Law within three years after Franchisor grants Franchisee
the franchise.
  1. ACKNOWLEDGMENTS. The following is added as a new Section 19.19 to the end of the Franchise Agreement:

19.19 ACKNOWLEDGMENTS.

Source: Item 23 — RECEIPTS (FDD pages 74–257)

What This Means (2025 FDD)

According to Face Foundrie's 2025 Franchise Disclosure Document, the term "Addendum" refers to modifications or state-specific alterations to the standard Face Foundrie Area Development Agreement. These addenda are designed to ensure compliance with local laws and regulations, and they take precedence over conflicting terms in the standard agreement. Several addenda are mentioned for specific states such as California, Maryland, Minnesota, North Dakota, Illinois, Washington and Wisconsin, suggesting that Face Foundrie tailors its agreements to address the legal requirements of different jurisdictions.

For prospective Face Foundrie area developers, it's crucial to carefully review any addendum applicable to their state. These addenda can modify various aspects of the agreement, including dispute resolution processes, franchisee rights, and other legal considerations. For example, the addendum for Washington addresses conflict of laws, franchisee bill of rights, site of arbitration/mediation/litigation, and general releases, highlighting the importance of understanding these state-specific provisions.

The existence of multiple addenda indicates that Face Foundrie is aware of and responsive to the diverse legal landscapes across different states. This can be beneficial for area developers as it ensures that the franchise agreement is adapted to local requirements, potentially reducing legal risks. However, it also means that area developers must be diligent in understanding the specific terms of their addendum and how it modifies the standard agreement.

In summary, the Addendum is a critical component of the Face Foundrie Area Development Agreement, serving to incorporate state-specific legal requirements and modifications. Prospective area developers should pay close attention to the addendum applicable to their state to fully understand their rights and obligations under the 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.