How is the Development Territory defined in the Face Foundrie Area Development Agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
If you sign an Area Development Agreement, we will describe the development territory in the Rider to that agreement ("Development Territory"). The territory will typically be described as a geographic area in which each of your Facial Bars must be developed. The factors that we consider in determining these territories include density of population, growth trends of population, apparent degree of affluence of population, the density of residential and business entities, traffic generators, driving time, natural boundaries, location of other Facial Bars, the number of Facial Bars you wish to develop, and our development plans. As long as you are in compliance with your obligations under the Area Development Agreement and all of the Franchise Agreements between you (and your affiliates) and us, we will not establish or operate, or license anyone other than you to establish or operate, a Facial Bar in these development territories, subject to our reserved rights below. Your rights in these territories will end at the earlier of: (i) the date your Area Development Agreement expires; and
(ii) the date you must sign the Franchise Agreement for your last Facial Bar under the terms of the Development Schedule. If the Development Territory covers more than one city, county, or designated market area, the protection for each particular city, county or designated market area will also expire on the date when we determine the protected territory to be given to you under a franchise agreement for your final Facial Bar to be developed in that city, county, or designated market area. When your rights in your Development Territory have expired under the Area Development Agreement, you will still have the rights granted to you in any portion of these territories under an individual franchise agreement.
If you are in full compliance with your Development Agreement and any existing Franchise Agreement you have entered into with us, then we will grant you the right to open the number of Facial Bars you agreed to open as part of your Development Schedule within your Development Territory. Your Development Schedule will depend on the number of units you acquire the rights to develop in your Development Agreement; however, generally, your Development Schedule will be based on you opening one Facial Bar every 10 months.
If you sign an Area Development Agreement, you must sign individual Franchise Agreements and find a site that meets our approval under our then-current site approval criteria under each individual Franchise Agreement you sign.
Source: Item 12 — TERRITORY (FDD pages 43–46)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Development Territory granted under an Area Development Agreement is defined in a Rider attached to that agreement. This territory is typically a geographic area where the franchisee must develop their Facial Bars. Face Foundrie considers factors such as population density and growth, affluence, residential and business density, traffic, natural boundaries, existing Facial Bar locations, the number of units the developer wants to build, and Face Foundrie's development plans when determining the territory.
As long as the franchisee complies with the Area Development Agreement and Franchise Agreements, Face Foundrie will not establish or allow others to establish a Facial Bar in the Development Territory. These rights are subject to Face Foundrie's reserved rights and will end either when the Area Development Agreement expires or when the franchisee is required to sign the Franchise Agreement for their last Facial Bar under the Development Schedule. If the Development Territory spans multiple cities or counties, protection for each area expires when Face Foundrie determines the protected territory for the final Facial Bar to be developed in that area.
Even after the Development Territory rights expire under the Area Development Agreement, the franchisee retains the rights granted under any individual franchise agreements within those territories. To maintain these rights, the franchisee must adhere to the Development Schedule, which generally requires opening one Facial Bar every 10 months, although this can vary based on the number of units the developer is authorized to develop. The franchisee must also sign individual Franchise Agreements and secure sites that meet Face Foundrie's approval criteria for each location.