What constitutes a default that allows Face Foundrie to terminate the Area Developer Agreement with notice?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.4 Notice and Opportunity to Cure Other Defaults*.* Except as otherwise provided in Sections 6.1, 6.2 , and 6.3 above, if Area Developer fails to comply with any material term and condition of this Agreement, such action shall constitute a default under this Agreement and, upon the occurrence of any such default, Franchisor may terminate this Agreement by giving written notice of termination stating the nature of such default to Area Developer at least thirty (30) days prior to the effective date of termination; provided, however, that Area Developer may avoid termination by curing the default to Franchisor's satisfaction, and by promptly providing proof thereof to Franchisor within the 30-day period.
If any such default is not cured within the specified time, or such longer period as applicable law may require, this Agreement and all rights granted hereunder (including but not limited to, the right to develop new Franchised Facial Bars) will terminate without further notice to Area Developer effective immediately upon the expiration of the thirty (30) day period or such longer period as applicable law may require.
- 6.5 Franchisor's Other Options Upon Default*.* Franchisor, in its discretion, may elect, in lieu of terminating this Agreement, to use other remedial measures for Area Developer's breach of this Agreement, which include, but are not limited to: (i) loss of the limited exclusivity, or reduction in the scope of protections, granted to Area Developer under Section 1.2 herein for the Development Area; (ii) reduction in the scope of the Development Area; and/or (iii) reduction in the number of Franchised Facial Bars to be developed by Area Developer.
If Franchisor exercises said right, Franchisor shall not have waived its right to, in the case of future defaults, exercise all other rights and invoke all other provisions that are provided in law and/or set out under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Area Developer Agreement can be terminated with 30 days written notice if the Area Developer fails to comply with any material term or condition of the agreement. However, Face Foundrie must provide written notice stating the nature of the default, giving the Area Developer an opportunity to cure the default within that 30-day period. If the Area Developer cures the default to Face Foundrie's satisfaction and provides proof of such cure promptly within the 30-day window, termination can be avoided.
If the default is not cured within the 30-day period (or any longer period required by applicable law), the Area Developer Agreement and all rights granted under it, including the right to develop new franchised facial bars, will terminate immediately without further notice.
Face Foundrie also has the option to use other remedial measures instead of terminating the agreement. These measures include loss of exclusivity, reduction in the scope of protections for the development area, reduction in the development area's size, or a reduction in the number of franchised facial bars to be developed by the Area Developer. If Face Foundrie chooses to exercise these other options, it does not waive its right to exercise all other rights and provisions in the case of future defaults.