Can Face Foundrie alter a franchisee's territory without the franchisee's consent?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not reduce the size of your Territory even if the population in it increases. Likewise, we will not expand the size of your Territory if the population in it decreases. We cannot alter your Territory unless you give us your written consent. Without our prior written consent, you may not conduct sales activities outside your Territory. You may not conduct any Facial Bar activities outside of the premises of your Facial Bar unless we have approved such activities in writing, and you may not use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, to make sales outside of your Territory.
Source: Item 12 — TERRITORY (FDD pages 43–46)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie cannot alter a franchisee's territory without written consent from the franchisee. However, the FDD also states that Face Foundrie does not grant exclusive territories. This means that while the franchisor cannot unilaterally change the boundaries of a franchisee's territory, the franchisee may face competition from other franchisees, company-owned outlets, or other channels of distribution, even within their own territory.
This lack of an exclusive territory is a significant factor for potential franchisees to consider. While Face Foundrie will not reduce the size of a territory even if the population increases, the franchisee must be aware that the franchisor reserves the right to establish other outlets or channels that may compete within the same area. The franchisee also has no rights to acquire additional franchises or establish additional Facial Bars.
Face Foundrie also has reserved rights to operate similar businesses under different names and symbols, potentially even within a franchisee's territory. One example cited in the FDD is the affiliate Laserie Edina LLC, which operates a medical spa under the "Lasérie" trademark. While Face Foundrie anticipates minimal conflicts between the two brands, a Lasérie location may solicit customers within a Face Foundrie franchisee's territory. Prospective franchisees should carefully evaluate the potential impact of these reserved rights on their business.
Furthermore, the franchisee cannot conduct sales activities outside their territory without Face Foundrie's prior written consent. They also cannot conduct any Facial Bar activities outside of the approved premises without written approval, and they cannot use other distribution channels to make sales outside their territory. These restrictions highlight the importance of understanding the specific terms and conditions outlined in the Franchise Agreement regarding territory and sales activities.