Will arbitration be conducted on an individual or classwide basis for Face Foundrie?

According to Face Foundrie's 2025 Franchise Disclosure Document, arbitration between the franchisor and an area developer will be conducted on an individual basis, not a class-wide basis. This means that any disputes that arise will be handled separately, and an area developer cannot join with other franchisees to bring a single, collective claim against Face Foundrie.

Furthermore, the FDD specifies that an arbitration proceeding between Face Foundrie and its affiliates, shareholders, officers, directors, managers, agents, and/or employees, and an area developer (including their principals, guarantors, affiliates, and/or employees) cannot be consolidated with any other arbitration proceeding between Face Foundrie and any other person. This reinforces the individual nature of the arbitration process.

This clause has significant implications for prospective Face Foundrie area developers. It prevents them from participating in class action lawsuits against the franchisor, potentially limiting their legal recourse in case of widespread issues affecting multiple franchisees. While individual arbitration is still an option, it may be a more expensive and time-consuming process compared to joining a class action. Area developers should carefully consider this provision and its potential impact on their rights and remedies before investing in a Face Foundrie franchise.