Am I relieved of my obligations to customers after the termination of my Face Foundrie franchise agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Promptly, and in no event more than three (3) days after the termination or expiration of this Agreement, provide to Franchisor any and all information Franchisor requests regarding events, products or services to be provided by Franchisee or the Facial Bar after the date of expiration or termination, and at Franchisor's option, Franchisee will either (i) pay to Franchisor any amounts it has received from customers for events or products or services to be provided after the date of termination or expiration, and assign to Franchisor or its designee any contracts or related agreements to such events, products or services, or (ii) return such amounts to customers directly as well as any termination fees or penalties under such contracts.
Nothing herein will obligate Franchisor to take assignment of any obligations of Franchisee under any such contracts or relieve Franchisee of any liability for its obligations to customers or third parties after the termination or expiration of this Agreement;
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees have ongoing obligations to customers even after the termination or expiration of the franchise agreement. Specifically, within three days of termination or expiration, Face Foundrie requires the franchisee to provide all requested information regarding events, products, or services that the franchisee will provide after the termination date.
Face Foundrie offers two options regarding pre-paid services or products. The franchisee must either pay Face Foundrie any amounts received from customers for events, products, or services to be provided after termination, and assign any related contracts to Face Foundrie or its designee. Alternatively, the franchisee can return such amounts directly to the customers, including any termination fees or penalties associated with those contracts.
However, the FDD explicitly states that Face Foundrie is not obligated to take over any of the franchisee's obligations under these contracts, and the franchisee remains liable for their obligations to customers and third parties even after the agreement ends. This means that even after the franchise agreement is terminated, a franchisee may still be responsible for fulfilling obligations to customers, such as providing services or products that were pre-paid before the termination date.