What constitutes an 'asset' of the Face Foundrie Area Developer for the purposes of default and termination?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
6.1.6 execution is levied against any asset of Area Developer or Area Developer's Franchised Facial Bars;
6.1.7 suit to foreclose any lien or mortgage against any asset of Area Developer or Area Developer's Franchised Facial Bars is instituted against Area Developer and not dismissed within thirty (30) days; or
6.1.8 any asset of Area Developer's or any Franchised Facial Bar of Area Developer's shall be sold after levy thereupon by any sheriff, marshal, or constable.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, an 'asset' of the Area Developer, which can trigger default and potential termination of the Area Development Agreement, includes both general assets and those specific to the Franchised Facial Bars. This definition is important because certain events tied to these assets can lead to the termination of the agreement.
Specifically, the agreement considers the levying of an execution against any asset of the Area Developer or their Franchised Facial Bars as a default event. Similarly, the institution of a suit to foreclose any lien or mortgage against these assets, if not dismissed within thirty days, also constitutes a default. Furthermore, the sale of any asset belonging to the Area Developer or any of their Franchised Facial Bars after a levy by a sheriff, marshal, or constable is also considered a default event.
These conditions highlight the importance of maintaining financial stability and managing legal obligations for Face Foundrie Area Developers. Failure to protect assets from legal claims or financial distress can result in the termination of the Area Development Agreement, leading to a loss of development rights and potential financial repercussions.