What aspects of the franchise are addressed in the 'Grant of Rights' section of the Face Foundrie franchise agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
2. GRANT OF RIGHTS.
- 2.01 Grant of Franchise. Subject to the terms of this Agreement, Franchisor grants to Franchisee the right, and Franchisee assumes the obligation, to operate a Facial Bar from the location set forth on Exhibit A hereto (the "Premises") and to use the System and the Marks solely in connection therewith, for a term of ten (10) years, commencing on the Effective Date of this Agreement (the "Term").
Franchisee may not conduct the business of the Facial Bar or use the System at any site other than the Premises, or relocate the Facial Bar, without Franchisor's prior written consent.
Any approved relocation of the Facial Bar shall be at Franchisee's sole cost and expense, and Franchisor shall have the right to charge Franchisee a relocation fee equal to One Thousand Dollars ($1,000) plus any expenses Franchisor incurs in facilitating the relocation.
The option for renewal of the rights granted to Franchisee in this Agreement is described in Section 15 below.
- 2.02 Protected Territory. During the Term, Franchisor will not operate (directly or through an Affiliate), nor grant to another Person the right to operate, any Face Foundrié Facial Bar located within the geographical area set forth on Exhibit A hereto (the "Protected Territory").
Notwithstanding the foregoing, Franchisor has the right to operate (directly or through an Affiliate), and to grant to others the right to operate, within the Protected Territory and elsewhere: (a) Face Foundrié Facial Bars or other businesses using any part or all of the System and/or Marks that are operating as of the Effective Date; and (b) businesses that Franchisor or its Affiliates purchase (or as to which Franchisor or its Affiliates purchases the rights as franchisor) that are part of another franchise system or chain and either continue to operate them independently or convert them to Face Foundrié Facial Bars.
- 2.03 Reservation of Rights. Notwithstanding anything to the contrary set forth herein, Franchisor retains the right, in its sole discretion, to:
[Item 22: CONTRACTS]
2.03 Reservation of Rights. Notwithstanding anything to the contrary set forth herein, Franchisor retains the right, in its sole discretion, to:
(a) establish and operate, and grant to other franchisees or licensees the right to establish and operate, a Face Foundrié Facial Bar or any other business using the Marks, the System or any variation of the Marks and the System, (i) in any location outside the Protected Territory or (ii) as contemplated by Section 2.02 above; in each case on any terms and conditions that Franchisor deems appropriate;
(b) develop, use and franchise anywhere (including within the Protected Territory) the rights to any trade names, trademarks, service marks, commercial symbols, logos, emblems, signs, slogans, insignia, patents or copyrights not designated by Franchisor as Marks, for use with similar or different franchise systems for the sale of similar or different products or services than those constituting a part of the System, without granting Franchisee any rights therein;
(c) own, operate, franchise or license anywhere businesses offering products and services of any other type whatsoever operating under marks other than the Marks; and
(d) offer, distribute, sell and provide products or services identified by the Marks or other trademarks, service marks, commercial symbols or emblems to customers located in the Protected Territory through any distribution channel or method, including through the Internet or worldwide web (or any other existing or future form of electronic commerce), through smart phone or other digital applications, mail order or catalogs, through telemarketing or other direct marketing, through mass merchandise, convenience stores, supermarkets, grocery stores, convenience stores, and club stores; provided, however, that any such sales will not be made from a Face Foundrié Facial Bar located in the Protected Territory.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, the 'Grant of Rights' section outlines the specific rights granted to the franchisee by Face Foundrie, as well as the rights that Face Foundrie retains.
The franchisee is granted the right and obligation to operate a Face Foundrie Facial Bar at a specific location outlined in Exhibit A of the agreement. This right extends for a term of ten years, beginning on the agreement's effective date. The franchisee is restricted from operating the business or using the Face Foundrie system at any location other than the approved premises without prior written consent from Face Foundrie. Relocation of the Facial Bar is at the franchisee's expense, and Face Foundrie has the right to charge a $1,000 relocation fee, in addition to any expenses incurred by Face Foundrie in facilitating the relocation.
Face Foundrie also defines a protected territory for the franchisee, described in Exhibit A, within which Face Foundrie will not operate or grant another franchise. However, Face Foundrie retains the right to operate or franchise other businesses, including Face Foundrie Facial Bars, within the protected territory under certain conditions, such as businesses operating as of the effective date or businesses acquired as part of another franchise system. Face Foundrie also retains the right to establish and operate Face Foundrie Facial Bars or any other business using the Face Foundrie marks or system outside the protected territory, develop and franchise other trade names and trademarks, and offer products or services through various distribution channels, as long as sales are not made from a Face Foundrie Facial Bar located in the protected territory.