How can a Face Foundrie area developer avoid termination for failing to comply with a material term?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in | Summary | |
|---|---|---|---|
| Area Development Agreement | rights or obligations under the Area Development Agreement, or any material asset of your business, without our prior written consent, which shall be subject to all of the conditions and requirements for transfers set forth in the Franchise Agreement executed simultaneously with the Area Development Agreement that we deem applicable to a proposed transfer under the Area Development Agreement. | ||
| (l) Franchisor approval | Section 7.2 | We have the right to approve transfers. | |
| of transfer by area | |||
| developer | |||
| (m) Conditions for franchisor’s approval of transfer | Sections 7.2 and 7.3 | Unless waived, a transfer of the Area Development Agreement is conditioned on, among other factors, the requirement that the proposed transfer of the Area Development Agreement be made in conjunction with a simultaneous transfer of all existing Franchise Agreements to the same approved transferee. Additionally, your first Facial Bar under your first Franchise Agreement must be open and operating. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
Based on the 2025 Face Foundrie Franchise Disclosure Document, an area developer can avoid termination for failing to comply with a material term of the Area Development Agreement by adhering to the stipulations regarding transfers. Specifically, any transfer of rights, obligations, or material assets requires the franchisor's prior written consent, subject to conditions outlined in the Franchise Agreement.
To gain approval for a transfer, Face Foundrie requires that the transfer of the Area Development Agreement occur alongside a simultaneous transfer of all existing Franchise Agreements to the same approved transferee. Additionally, the area developer's first Facial Bar under their initial Franchise Agreement must be open and operational.
In essence, Face Foundrie area developers must ensure they meet all conditions for transfer approval, including having an operating Facial Bar and transferring all existing franchise agreements simultaneously to a qualified transferee, to avoid breaching the Area Development Agreement and risking termination.