What agreement are the Personal Covenants related to for Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.04 Personal Covenants of Restricted Parties. As a condition to the effectiveness of this Agreement, and at the time Franchisee delivers this signed Agreement to Franchisor, each Restricted Party must sign and deliver to Franchisor the Personal Covenants attached hereto as Exhibit E (the "Personal Covenants"), agreeing to be bound personally by all the provisions of Sections 7.01, 7.02, 7.03, 7.06 and 13.05 hereof. If there are any changes in the identity of any such Restricted Party while this Agreement is in effect, Franchisee must notify Franchisor promptly and cause the new Restricted Party to sign and deliver to Franchisor the Personal Covenants.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Personal Covenants are related to the Franchise Agreement. As a condition for the Franchise Agreement to become effective, each Restricted Party must sign and deliver the Personal Covenants (Exhibit E) to Face Foundrie. By signing, the Restricted Party agrees to be personally bound by the provisions outlined in Sections 7.01, 7.02, 7.03, 7.06, and 13.05 of the Franchise Agreement.
These sections likely cover critical aspects of the franchise operation, such as confidentiality, non-competition, and other obligations necessary to protect Face Foundrie's interests. If there are any changes to the Restricted Parties while the Franchise Agreement is in effect, the franchisee is obligated to promptly inform Face Foundrie and ensure that the new Restricted Party signs and delivers the Personal Covenants.
This requirement ensures that key individuals associated with the franchisee are personally committed to upholding the terms of the Franchise Agreement, providing an additional layer of protection for Face Foundrie. The Personal Covenants are attached as Exhibit E to the Franchise Agreement.