Does the Face Foundrie agreement confer any rights or remedies to third parties?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
14.3 No Rights on Third Parties*.* Except as expressly provided to the contrary herein, nothing in this Agreement is intended, nor shall be deemed, to confer upon any person or legal entity other than Area Developer, Franchisor, officers, directors, shareholders, agents, and employees of Franchisor, and such successors and assigns of Franchisor, any rights or remedies under or by reason of this Agreement.
14.4 Full Scope of Terms.
The provisions of this Section are intended to benefit and bind certain third-party non-signatories and will continue in full force and effect subsequent to and notwithstanding this Agreement's expiration or termination.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Area Developer agreement generally does not confer rights or remedies to third parties, with some exceptions. Specifically, the agreement states that it is not intended to benefit any person or legal entity other than the Area Developer, Face Foundrie, their officers, directors, shareholders, agents, employees, and the successors and assigns of Face Foundrie.
However, there is an exception mentioned in Section 16.4, which indicates that the provisions regarding limitations on liability and claims are intended to benefit and bind certain third-party non-signatories. This means that certain third parties who are not directly part of the agreement may still be able to enforce some of its provisions, particularly those related to liability and claims. These provisions will remain in effect even after the agreement expires or terminates.
For a prospective Face Foundrie Area Developer, this means that while the agreement primarily governs the relationship between the developer and Face Foundrie, certain third parties could have enforceable rights under specific circumstances. It is important to carefully review Section 16.4 of the Area Developer agreement to understand which third parties might have such rights and what specific provisions they can enforce. This could impact the Area Developer's potential liabilities and obligations during and after the term of the agreement.