Is the covenant not to compete extending beyond termination of the Face Foundrie franchise agreement always enforceable in California?

According to Face Foundrie's 2025 Franchise Disclosure Document, a covenant not to compete that extends beyond the termination of the franchise agreement may not be enforceable under California law. This means that if a franchisee's agreement with Face Foundrie contains such a provision, a California court might not uphold it. This is due to California's general policy against restricting individuals from pursuing a livelihood, although there are some limited exceptions.

This disclosure is particularly important for prospective Face Foundrie franchisees in California because it clarifies that certain terms in the franchise agreement may not be fully enforceable in their state. Franchisees should be aware that if they leave the Face Foundrie system, the enforceability of the non-compete clause will be subject to California law, which may be more favorable to the franchisee than the terms of the agreement itself.

It is advisable for potential Face Foundrie franchisees in California to consult with legal counsel to fully understand the implications of this provision and how it might affect their future business activities after the franchise relationship ends. This consultation can help them assess the risks and benefits of investing in a Face Foundrie franchise, given the legal landscape in California.