What California laws govern the Face Foundrie franchise offering in California?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
ting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
ADDENDUM REQUIRED BY THE STATE OF CALIFORNIA
In recognition of the requirements of the California Franchise Investment Law, California Corporations Code §§ 31000 - 31516, and the California Franchise Relations Act, California Business and Professions Code §§ 20000 - 20043, the franchise disclosure document of Face Foundrie Franchising L.L.C. in connection with the offer and sale of franchises for use in the State of California shall be amended to include the following:
-
- California Corporations Code § 31125 requires us to give you a disclosure document, in a form containing the information that the Commissioner of Financial Protection and Innovation of the California Department of Financial Protection and Innovation may by rule or order require, prior to a solicitation or a proposed material modification of an existing franchise.
-
- THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE FRANCHISE DISCLOSURE DOCUMENT 14 DAYS PRIOR TO EXECUTION OF AGREEMENT.
-
- Item 3, "Litigation," shall be amended by the addition of the following language:
Neither Franchisor, nor any person or franchise broker in Item 2 of the franchise disclosure document, is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling such persons from membership in this association or exchange.
- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," shall be amended by the addition of the following language:
The regulations of the California Department of Financial Protection and Innovation require that the following information concerning provisions of the franchise agreement be disclosed to you:
The California Franchise Relations Act provides rights to you concerning termination, transfer or non-renewal of a franchise. If the franchise agreement contains a provision that is inconsistent with California law, California law will control.
The franchise agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law, 11 U.S.C.A.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the franchise offering in California is governed by the California Franchise Investment Law, California Corporations Code §§ 31000 - 31516, and the California Franchise Relations Act, California Business and Professions Code §§ 20000 - 20043.
The FDD specifies that Face Foundrie must provide a disclosure document to prospective franchisees in California, adhering to the format required by the Commissioner of Financial Protection and Innovation of the California Department of Financial Protection and Innovation, before any solicitation or material modification of an existing franchise agreement. Additionally, all proposed agreements related to the sale of the franchise must be delivered along with the franchise disclosure document 14 days prior to the execution of the agreement.
The Franchise Agreement requires the application of the laws of Minnesota, but this provision may be unenforceable under California law. The franchise agreement also contains a waiver of punitive damages and a jury trial, which may also be unenforceable under California law. The Franchise Relations Act provides rights to franchisees concerning termination, transfer, or non-renewal of a franchise, and California law will take precedence if the franchise agreement contains provisions inconsistent with it.
California's Franchise Investment Law (Corporations Code sections 31512 and 31512.1) states that any provision of a franchise agreement or related document requiring the franchisee to waive specific provisions of the law is contrary to public policy and is void and unenforceable. The law also prohibits Face Foundrie from disclaiming or denying (i) representations it, its employees, or its agents make to you, (ii) your ability to rely on any representations it makes to you, or (iii) any violations of the law.