What are the consequences if a Face Foundrie franchisee violates the restrictions on suppliers (Item 8), considering the obligations outlined in Item 9?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon receipt of written notice of such revocation, Franchisee shall cease to sell or use any disapproved item, Products and/or cease to purchase from any disapproved supplier.
9.03 Intentionally Omitted.
- 9.04 Computer System and Required Software. The following terms and conditions shall apply with respect to the Computer System and Required Software:
- (a) Franchisor shall have the right to specify or require that certain brands, types, makes, and/or models of communications, computer systems, and hardware to be used by, between, or among Face Foundrié Facial Bars, including without limitation: (i) computerized data processing systems, data, audio, video, and voice storage, retrieval, and transmission systems for use at Face Foundrié Facial Bars, between or among Face Foundrié Facial Bars, and between and among the System and Franchisor and/or Franchisee; (ii) credit card, debit card, and other non-cash payment systems, and related hardware; (iii) physical, electronic, and other
security systems; (iv) tablets, printers and other peripheral devices; (v) archival back-up systems; and (vi) internet access mode and speed (collectively, the "Computer System").
(b) Franchisor shall have the right, but not the obligation, to develop or have developed for it, or to designate: (i) computer software programs and accounting system software that Franchisee must use in connection with the Computer System, and established digital applications, and any successor technology or replacement thereto ("Required Software"), which Franchisee shall install; (ii) updates, supplements, modifications, or enhancements to the Required Software, which Franchisee shall install; (iii) the tangible media upon which such Franchisee shall record data; and (iv) the database file structure of Franchisee's Computer System.
(c) Franchisee shall make, from time to time, such upgrades and other changes to the Computer System and Required Software as Franchisor may request in writing, and Franchisor may periodically require Franchisee, at its expense, to upgrade or update the Computer System and Required Software to remain in compliance with the standards, specifications and requirements required by Franchisor (collectively, "Computer Upgrades").
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, Item 9 lists the franchisee's obligations, and refers to Item 8 regarding restrictions on products/services offered. Item 8 states that Face Foundrie estimates that required purchases and leases from designated or approved suppliers represent approximately 80% to 90% of the total cost of establishing a Facial Bar, and approximately 85% to 95% of the total cost of operating the Facial Bar. If a franchisee violates the supplier restrictions, Face Foundrie can revoke approval of the unapproved item or supplier. Upon receiving written notice of such revocation, the franchisee must stop selling or using any disapproved item, products, and/or cease purchasing from any disapproved supplier.
Face Foundrie also has the right to specify or require certain brands, types, makes, and/or models of computer systems and hardware to be used by Face Foundrié Facial Bars. This includes computerized data processing systems, credit card payment systems, security systems, tablets, printers, and internet access. Face Foundrie can also designate computer software programs and accounting system software that the franchisee must use, including updates and modifications. Franchisees must make upgrades and changes to the computer system and software as requested by Face Foundrie.
Furthermore, the franchisee acknowledges that Face Foundrie has developed confidential information that is part of the system and not commonly known by the public. The franchisee agrees not to disclose or use any confidential information, except as required to fulfill their obligations under the Franchise Agreement or with written approval from Face Foundrie. Violation of these confidentiality terms could lead to legal action, including injunctive relief, as Face Foundrie emphasizes the difficulty of ascertaining monetary damages and the irreparable harm that would result from a breach of these covenants. Face Foundrie is entitled to injunctive relief without posting bond or security, which is waived.