What conditions must be met for Face Foundrie to approve a transfer of the Area Development Agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Area Development Agreement | Summary | |
|---|---|---|---|
| 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 of transfer by area developer | Section 7.2 | We have the right to approve transfers. |
| (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)
According to Face Foundrie's 2025 Franchise Disclosure Document, the transfer of an Area Development Agreement is subject to Face Foundrie's prior written consent and the conditions outlined in the Franchise Agreement. Specifically, the transfer of the Area Development Agreement must occur alongside a simultaneous transfer of all existing Franchise Agreements to the same approved transferee.
In addition to the simultaneous transfer of all existing Franchise Agreements, Face Foundrie requires that the first Facial Bar under the franchisee's initial Franchise Agreement be open and operating before the Area Development Agreement transfer can be approved.
These conditions ensure that the new area developer is fully committed to and capable of operating the Face Foundrie franchise system. By requiring the simultaneous transfer of all existing Franchise Agreements and the operation of the first Facial Bar, Face Foundrie aims to maintain consistency and quality within its franchise network during ownership transitions.