What is the definition of 'Development Area' in the context of the Face Foundrie Area Developer 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. Notwithstanding the foregoing, Franchisor has the right to operate (directly or through an Affiliate), and to grant to others the right to operate, within the Development Area and elsewhere: (a) Face Foundrié Facial Bars or other businesses using any part or all of the System and/or Marks that are operating as of the Effective Date; and (b) businesses that Franchisor or its Affiliates purchase (or as to which Franchisor or its Affiliates purchases the rights as franchisor) that are part of another franchise system or chain and either continue to operate them independently or convert them to Face Foundrié Facial Bars.
1.3 Franchisor's Reserved Rights. Notwithstanding anything to the contrary set forth herein, Franchisor retains the right, in its sole discretion, to:
(a) establish and operate, and grant to other franchisees or licensees the right to establish and operate, a Face Foundrié Facial Bar or any other business using the Marks, the System or any variation of the Marks and the System, (i) in any location outside the Development Area or (ii) as contemplated by Section 1.2 above; in each case on any terms and conditions that Franchisor deems appropriate;
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, the Development Area is the specific geographic location where the Area Developer is authorized to develop Face Foundrie Facial Bars, as detailed in Paragraph 2 of Exhibit A of the Area Development Agreement. Each Face Foundrie Facial Bar developed under the agreement must be located within this designated Development Area, with the specific location to be identified in the Franchise Agreement for each unit. The Area Developer gains rights to this territory once Face Foundrie designates the Development Area.
However, until Face Foundrie officially designates a Development Area, the Area Developer does not have any rights to a protected territory. Face Foundrie retains certain rights within the Development Area, including the right to operate existing Face Foundrie Facial Bars or businesses acquired by Face Foundrie, even if they utilize the Face Foundrie system or marks.
Face Foundrie also reserves the right to develop and operate Face Foundrie Facial Bars or grant franchises to others within the Development Area if the area references sites that are yet to be determined. In such cases, the Area Developer may need to select a final location outside any protected territory granted to other franchisees or area developers, potentially outside the initially identified area. The protection for each city, county, or designated market area within the Development Area expires when Face Foundrie determines the protected territory for the Area Developer's final Facial Bar in that specific location.
The Area Development Fee is determined by the number of Face Foundrie Facial Bars to be developed and opened within the Development Area. The Area Developer authorizes Face Foundrie to define the Development Area and complete Exhibit A after the Area Development Agreement is executed, subject to Face Foundrie's approval of the development area.