What constitutes a 'Missed Deadline' under the Face Foundrie Area Development Agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.3 Missed Deadline*.* Failure by Area Developer to meet a deadline under the Development Schedule (a "Missed Deadline") shall constitute a default under this Agreement.
In such an event, Franchisor, in its discretion, may terminate this Agreement and all rights granted in accordance with this Agreement; or Franchisor, in its discretion, may elect, in lieu of terminating this Agreement, to take any of the actions described in Section 6.5 below.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a 'Missed Deadline' occurs when an area developer fails to meet a deadline outlined in the Development Schedule. The Development Schedule, as specified in Paragraph 1 of Exhibit A of the Area Development Agreement, sets the deadlines for executing Franchise Agreements for each Face Foundrie Facial Bar to be developed.
Missing a deadline constitutes a default under the Area Development Agreement, potentially leading to significant repercussions. Face Foundrie has the discretion to either terminate the agreement and all associated rights or take alternative actions as described in Section 6.5 of the agreement. This highlights the importance of adhering to the Development Schedule to maintain the area developer's rights and avoid potential penalties.
Prospective Face Foundrie area developers should carefully review the Development Schedule in Exhibit A and assess their ability to meet the specified deadlines. Understanding the consequences of a 'Missed Deadline' is crucial for managing the development process and maintaining a good standing with Face Foundrie. It is also important to note that force majeure events, excluding lack of adequate financing, may extend the applicable time period, provided the area developer makes reasonable efforts to correct the reason for the delay and gives Face Foundrie prompt written notice.