What compliance requirements must Face Foundrie franchisees and their owners meet to be approved for a transfer?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
urthermore, in the event that any Owner is an Entity, the interests of the shareholders, members, partners, beneficiaries, investors or other equity holders, as the case may be, in such Owner, may not be Transferred, without the prior written consent of Franchisor. Franchisor will not unreasonably withhold consent to a Transfer provided the requirements of Section 13.02 have been satisfied. Any Transfer in violation of this Section shall be void and of no force and effect.
13.02 Conditions for Approval. If Franchisor has not exercised its right of first refusal under Section 13.05, Franchisor will not unreasonably withhold its approval of a Transfer that meets all of the reasonable restrictions, requirements and conditions Franchisor may impose on the Transfer, the transferor(s) and/or the transferee(s), including the following:
(a) Franchisee and its Owners and Affiliates must be in compliance with the provisions of this Agreement and all other agreements with Franchisor or any of its Affiliates and have paid all outstanding amounts owed thereto, as well as to the approved suppliers to the System;
(b) The transferee shall demonstrate to Franchisor's satisfaction that the terms of the proposed transfer do not place an unreasonable financial or operational burden on the transferee, and that the transferee (or, if the transferee is other than an individual, such owners of beneficial interests in the transferee as Franchisor may request) meets Franchisor's then-current application qualifications (which may include educational, managerial, socially responsible, and business standards, good moral character, business reputation, and credit rating); has the aptitude and ability to operate the Facial Bar and absence of conflicting interests; and has adequate financial resources and capital to operate the Facial Bar;
(c) The proposed transferee must enter into an agreement in writing to assume and perform all of Franchisee's duties and obligations hereunder and/or, as required by Franchisor, execute the form of franchise agreement then being offered to new System franchisees, and such other ancillary agreements required by Franchisor for the Facial Bar franchised hereunder, which agreements shall supersede this Agreement and its ancillary documents in all respects, and the terms of which may differ from the terms of this Agreement including, without limitation, higher and/or additional fees;
(d) The transferee (and, if the transferee is not an individual, the Operating Partner), shall, at the transferee's expense, successfully attend and successfully complete any training programs then in effect for operators upon such terms and conditions as Franchisor may reasonably require;
(e) Franchisee or the proposed transferee must pay Franchisor a transfer fee equal to the greater of (i) Ten Thousand Do
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, both the franchisee and their owners must meet several compliance requirements to gain approval for a transfer. The franchisee, their owners, and affiliates must be in compliance with the existing franchise agreement and all other agreements with Face Foundrie or its affiliates. This includes paying all outstanding amounts owed to Face Foundrie, its affiliates, and approved suppliers. The goal is to ensure that all financial and contractual obligations are current before the transfer proceeds.
The proposed transferee must demonstrate that the transfer terms won't create unreasonable financial or operational burdens. The transferee (or the owners of beneficial interests, if the transferee isn't an individual) must meet Face Foundrie's then-current application qualifications. These qualifications can include educational, managerial, socially responsible, and business standards, good moral character, business reputation, and credit rating. The transferee needs to show they have the aptitude and ability to operate the Facial Bar, no conflicting interests, and adequate financial resources and capital.
Additionally, the transferee must commit to assuming all of the franchisee's duties and obligations by entering into a written agreement. Face Foundrie may require the transferee to execute the current franchise agreement offered to new franchisees, which could supersede the existing agreement and have different terms, including higher fees. The transferee (or the Operating Partner, if the transferee isn't an individual) must also successfully complete any required training programs at their own expense. The franchisee and its owners must execute a general release of claims against Face Foundrie, except where prohibited by law. Finally, the franchisee must pay a transfer fee equal to the greater of $10,000 or the reimbursement of all legal, accounting, training, and other expenses incurred by Face Foundrie in connection with the transfer.