Who is considered a 'Restricted Party' under the non-compete agreement for Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Non-Competition during Term. In addition to and not in limitation of any other restrictions on Franchisee contained herein, Franchisee and Franchisee's spouse, and, if Franchisee is not an individual, each of its Owners and their spouses (each, a "Restricted Party"), agree that they will not, directly or indirectly, for and on behalf of itself, himself, herself or any other Person, without the prior written consent of Franchisor, during the Term (i) have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business, regardless of location or (ii) perform services as a director, officer, manager, employee, consultant, representative, agent, or otherwise for a Competitive Business, regardless of location.
- (b) Post-Term Non-Competition. In addition to and not in limitation of any other restrictions on Franchisee contained herein, Franchisee and the Restricted Parties agree that they will not, for two (2) years following the effective date of termination or expiration of this Agreement for any reason, or following the date of a Transfer by Franchisee, or, with respect to a Restricted Party only, by such Restricted Party, directly or indirectly, for and on behalf of itself, himself, herself or any other Person, without the prior written consent of Franchisor, (i) have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business or (ii) perform services as a director, officer, manager, employee, consultant, representative, agent, or otherwise for a Competitive Business which, in either case, is located or operating within a ten (10) mile radius of the protected territory of any Face Foundrié Facial Bar in operation or under construction on the effective date of termination or expiration.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a 'Restricted Party' includes the franchisee, the franchisee's spouse, and if the franchisee is not an individual, each of its owners and their spouses. These individuals are subject to non-compete agreements both during the term of the franchise agreement and for a period after termination or transfer.
The non-compete agreement restricts 'Restricted Parties' from having any direct or indirect interest in a Competitive Business or performing services for a Competitive Business without Face Foundrie's prior written consent. This applies during the franchise term, regardless of the location of the Competitive Business. After the agreement terminates or the franchise is transferred, the restriction applies for two years within a ten-mile radius of any Face Foundrié Facial Bar in operation or under construction.
This definition is important for prospective franchisees because it extends the non-compete obligations beyond just the franchisee to include their spouse and business owners and their spouses. Face Foundrie requires each Restricted Party to sign and deliver a Personal Covenants agreement, agreeing to be personally bound by the non-compete and confidentiality provisions. This ensures that Face Foundrie can enforce these restrictions against these individuals directly.