In the Face Foundrie agreement, what sections contain covenants that the undersigned agrees to be personally bound by?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned hereby acknowledges and expressly agrees to be personally bound by all of the covenants contained in the Agreement, including, without limitation, those covenants contained in Sections 7 and 8. Signature by the undersigned on this Guaranty constitutes the undersigned's signature on the Agreement related to all covenants. The undersigned asserts that he or she has read such covenants, been advised by counsel regarding their effect, and hereby affirmatively agree to them in order to secure the rights granted to Area Developer by Franchisor under the Agreement. The undersigned further acknowledges and agrees that this Guaranty does not grant the undersigned any right to use the "Face Foundrié" marks or system licensed to Area Developer under the Agreement.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the undersigned agrees to be personally bound by all of the covenants contained in the agreement, including those in Sections 7 and 8. This means that individuals signing the guaranty are not only guaranteeing the financial obligations of the Area Developer but also agreeing to adhere to the operational and competitive restrictions outlined in those sections.
Section 7 likely pertains to the transfer of the Area Development Agreement, outlining the conditions and restrictions under which an Area Developer can transfer their rights and obligations to another party. Section 8 likely includes covenants related to non-competition, both during the term of the agreement and for a specified period after its termination or transfer. These non-compete clauses typically restrict the Area Developer from engaging in similar businesses within a defined geographic area.
The document emphasizes that by signing the guaranty, the undersigned is also signing the agreement related to all covenants, asserting they have read the covenants, received legal counsel about their implications, and affirmatively agree to them. This is to ensure that the guarantor is fully aware of the extent of their obligations and the potential impact on their own business activities. However, the guaranty does not grant the undersigned any right to use the "Face Foundrié" marks or system licensed to the Area Developer under the agreement.
Prospective Face Foundrie franchisees should carefully review Sections 7 and 8 of the Area Development Agreement, along with the guaranty, to fully understand the personal obligations they are undertaking. It is highly recommended to seek legal counsel to assess the implications of these covenants, especially the non-compete clauses, on their future business endeavors.