What is the consequence if a Face Foundrie franchisee omits a material fact?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.03 Representations. Franchisee and its Owners, jointly and severally, represent and warrant to Franchisor that: (a) neither Franchisee nor any of its Owners have made any untrue statement of any material fact or has omitted to state any material fact in the written information submitted in obtaining the rights granted hereunder; (b) neither Franchisee nor any of its Owners have any direct or indirect legal or beneficial interest in any beauty-related business that may be deemed a Competitive Business, except as Franchisee has otherwise completely and accurately disclosed in writing to Franchisor in connection with obtaining the rights granted hereunder; and (c) the execution and performance of this Agreement will not violate any other agreement to which Franchisee or any of its Owners may be bound.
Franchisee recognizes that Franchisor has executed this Agreement in reliance on all of the statements Franchisee and its Owners have made in writing in connection with this Agreement.
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 jointly and severally represent and warrant to Face Foundrie that they have not made any untrue statement of a material fact or omitted to state any material fact in the written information submitted to obtain the franchise rights. Face Foundrie executes the agreement in reliance on these statements.
In practical terms, this means that a prospective Face Foundrie franchisee must be completely honest and transparent in all information provided to Face Foundrie during the application and approval process. This includes, but is not limited to, financial information, background checks, and disclosures of any potential conflicts of interest, such as involvement in competitive businesses.
Failure to disclose a material fact could have serious consequences, potentially including legal action or termination of the franchise agreement. The FDD emphasizes that Face Foundrie relies on the accuracy of this information when granting the franchise, so any misrepresentation or omission could be grounds for dissolving the agreement. Franchisees should ensure they fully understand and comply with all disclosure requirements to avoid any potential issues.
It is important for prospective Face Foundrie franchisees to seek legal counsel to fully understand their obligations regarding disclosure and to ensure they are providing accurate and complete information to Face Foundrie. This will help protect their investment and ensure a smooth and compliant franchising relationship.