Does the definition of 'Competitive Business' for Face Foundrie include businesses that offer waxing services?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) "Competitive Business" Any business operating or franchising an establishment (i) at which more than 10% of the offerings consists of facial services or beauty treatments for the face, or (ii) that offers waxing services.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a 'Competitive Business' is defined to include businesses that offer waxing services. Specifically, the FDD states that a 'Competitive Business' includes any business operating or franchising an establishment that offers waxing services. This definition impacts a franchisee because it restricts them and their owners from having any direct or indirect interest in such businesses, unless they have disclosed it in writing to Face Foundrie.
This restriction is in place to protect Face Foundrie's market position and prevent franchisees from diverting resources or knowledge to competing ventures. The franchisee must disclose any existing interests in beauty-related businesses to Face Foundrie to ensure compliance with the Franchise Agreement. Failure to do so could be a breach of contract.
This clause is fairly standard in franchise agreements, as franchisors want to prevent conflicts of interest and protect their brand. However, the breadth of the definition is important for a prospective franchisee to consider. If a franchisee or one of their owners has an interest in a business that offers waxing services, they need to disclose this to Face Foundrie and ensure it does not violate the terms of the Franchise Agreement. They should seek legal counsel to fully understand the implications of this clause before signing the agreement.