What does the Face Foundrie Area Developer acknowledge regarding potential benefits and risks?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned, personally and as an officer(s), member(s) or partner(s) of Area Developer, as applicable, does hereby certify that he/she has conducted an independent investigation of the business contemplated by this Area Development Agreement and the Face Foundrié Franchising L.L.C. Franchise Agreement, and that the decision to execute the Area Development Agreement was based entirely upon the independent investigation by the undersigned; and the undersigned further certifies that he/she has not relied upon, in any way, any claims regarding potential sales, income, or earnings to be derived from the business contemplated by the Franchise Agreement and Area Development Agreement, and has not relied upon any claims regarding past or current sales, income or earnings of Franchisor or its affiliate operated Face Foundrié Facial Bars that are contrary to or different from the information contained in Franchisor's Franchise Disclosure Document. The undersigned further certifies that he/she understands the risks involved in this investment and Face Foundrié Franchising L.L.C. makes no representation or guaranty, explicit or implied, that the Area Developer will be successful or will recoup his/her investment.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Area Developer acknowledges several key aspects regarding potential benefits and risks associated with the Area Development Agreement and Franchise Agreement. The Area Developer certifies that their decision to execute the Area Development Agreement is based on their own independent investigation and not on any claims regarding potential sales, income, or earnings that contradict the information provided in Face Foundrie's Franchise Disclosure Document. This highlights the importance of conducting thorough due diligence and not relying solely on projected financial figures.
Furthermore, the Area Developer acknowledges understanding the risks involved in the investment. Face Foundrie explicitly states that it makes no representation or guarantee, either explicit or implied, that the Area Developer will be successful or recoup their investment. This underscores the inherent risks of investing in a franchise and the absence of any guarantees of profitability. It is common in the franchise industry for franchisors to avoid making earnings claims or guarantees, as the success of a franchise depends heavily on the franchisee's management skills, local market conditions, and other factors beyond the franchisor's control.
In essence, the Area Developer acknowledges that they are entering into the agreement with a clear understanding of the potential risks and without relying on any guaranteed outcomes or representations from Face Foundrie that are inconsistent with the Franchise Disclosure Document. This acknowledgment is a standard practice in franchising, intended to protect both the franchisor and franchisee by ensuring that the franchisee is making an informed decision based on their own assessment of the opportunity.