What is the definition of 'Development Area' in the Face Foundrie agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
, pursuant to the terms and conditions of this Agreement, to develop no less than the number of Face Foundrié Facial Bars (the "Franchised Facial Bars") as set forth in Exhibit A to this Agreement. In this regard, the parties further agree that:
1.1.1 Each Franchised Facial Bar developed hereunder shall be operated pursuant to a separate Face Foundrié Franchise Agreement with Franchisor (a "Franchise Agreement") that shall be executed as provided in Section 3.4 below.
1.1.2 For each Franchised Facial Bar to be developed under this Agreement, Area Developer shall execute the Franchise Agreement for such Franchised Facial Bar in accordance with the deadlines set forth in the development schedule specified in Paragraph 1 of Exhibit A to this Agreement (the "Development Schedule").
1.1.3 Each Franchised Facial Bar developed hereunder shall be at a specific location, which shall be designated in the Franchise Agreement, that is within in the area described in Paragraph 2 of Exhibit A to this Agreement (the "Development Area"). If a "TBD" (to be determined) search area has been designated in Paragraph 2 of Exhibit A, Area Developer hereby authorizes Franchisor to designate the Development Area and complete Exhibit A subsequent to execution of this Agreement upon Franchisor approval of Area Developer's proposed territory. Until Franchisor has so designated a Development Area, Area Developer will not have any rights to a protected territory.
1.2 Development Area*.* Except as otherwise set forth herein (including, without limitation, the rights retained by Franchisor as described in Section 1.3), during the term of this Agreement, and so long as Area Developer is in compliance with its obligations under this Agreement and all of the Franchise Agreements between Area Developer (including any affiliate of Area Developer), Franchisor shall not establish or operate, or license anyone other than Area Developer to establish or operate, a Face Foundrié Facial Bar under the Marks and System at any location that is within the Development Area.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Development Area is the specific geographic location where the Franchised Facial Bars will be developed, as outlined in Paragraph 2 of Exhibit A of the Area Development Agreement. Each Face Foundrie location must be within this designated area, which is further specified in the individual Franchise Agreement for that location.
If the Development Area is not yet determined ('TBD') at the time of signing the Area Development Agreement, Face Foundrie retains the authority to designate the Development Area and complete Exhibit A upon approval of the proposed territory. Until Face Foundrie officially designates the Development Area, the Area Developer does not have any rights to a protected territory.
Face Foundrie also retains specific rights within the Development Area. They can operate or franchise others to operate Face Foundrie Facial Bars that were already in operation as of the agreement's effective date. Additionally, Face Foundrie can operate or franchise businesses they acquire, even if those businesses use a different franchise system or chain, and either continue to operate them independently or convert them to Face Foundrie Facial Bars. This means that even within a Development Area, Face Foundrie retains considerable control and flexibility over business operations.