What does the Face Foundrie Area Developer acknowledge regarding the cancellation and termination of previous contracts?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.6 No Further Rights*.* Upon termination or expiration of this Agreement, Area Developer shall have no right to establish or operate any Face Foundrié Facial Bar for which a Franchise Agreement has not been executed by Franchisor at the time of termination or expiration.
Franchisor's remedies for Area Developer's breach of this Agreement shall include, without limitation, Area Developer's loss of its right to develop additional Franchised Facial Bars under this Agreement, and Franchisor's retention of all area development fees paid or owed by Area Developer.
Upon termination or expiration, Franchisor shall be entitled to establish, and to franchise others to establish, Face Foundrié Facial Bars in the Development Area, except as may be otherwise provided under any Franchise Agreement which has been executed between Franchisor and Area Developer or Area Developer's affiliates (as permitted under Section 3.4.3 above).
- 6.7 Damages Upon Termination.
In addition to the above, upon termination or expiration of this Agreement, Area Developer shall promptly pay all sums owing to Franchisor and its affiliates.
In the event of termination for any default of Area Developer, such sums shall include, without limitation, all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of the default and termination, which obligation shall give rise to, and remain until paid in full, a lien in favor of Franchisor against any and all of the personal property, furnishings, equipment, signs, fixtures, and inventory owned by Area Developer at the time of default.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
Based on the 2025 Face Foundrie Franchise Disclosure Document, the Area Developer acknowledges several conditions and potential outcomes related to the termination of the Area Development Agreement. Specifically, the Area Developer acknowledges that the agreement is subject to immediate termination if they, or a member of their immediate family, engages in a competitive business. A "Competitive Business" is defined as any business where more than 10% of its offerings consist of facial services or beauty treatments for the face, or that offers waxing services. This restriction does not apply to other Face Foundrie Facial Bars licensed by the franchisor or ownership of less than 5% of a publicly held corporation's equity securities.
Additionally, the Area Developer acknowledges restrictions on engaging in a Competitive Business for two years following a transfer, expiration, or termination of the agreement. This restriction applies within the Development Area and within a 10-mile radius of any other Face Foundrie Facial Bar. The Area Developer also acknowledges that upon termination or expiration of the agreement, they have no right to establish or operate any Face Foundrie Facial Bar for which a Franchise Agreement has not been executed by the franchisor at the time of termination or expiration.
Furthermore, Face Foundrie's remedies for the Area Developer's breach of the agreement include the loss of the right to develop additional Franchised Facial Bars and the retention of all area development fees paid or owed by the Area Developer. Upon termination or expiration, Face Foundrie is entitled to establish, and to franchise others to establish, Face Foundrie Facial Bars in the Development Area, except as otherwise provided under any Franchise Agreement executed between Face Foundrie and the Area Developer or their affiliates. The Area Developer is responsible for paying all sums owing to Face Foundrie and its affiliates upon termination or expiration, including damages, costs, and expenses, including reasonable attorneys' fees, incurred by Face Foundrie as a result of the default and termination.