What is the duration of the initial franchise term granted to a Face Foundrie franchisee?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.01 Grant of Franchise. Subject to the terms of this Agreement, Franchisor grants to Franchisee the right, and Franchisee assumes the obligation, to operate a Facial Bar from the location set forth on Exhibit A hereto (the "Premises") and to use the System and the Marks solely in connection therewith, for a term of ten (10) years, commencing on the Effective Date of this Agreement (the "Term").
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the initial franchise term is for ten years. Specifically, Face Foundrie grants the franchisee the right to operate a Facial Bar at a specified location for a term of ten years, beginning on the effective date of the Franchise Agreement.
At the end of the initial term, a Face Foundrie franchisee has the option to acquire a successor franchise for one additional ten-year term. However, this renewal is not automatic. The franchisee must meet certain conditions, including compliance with the existing agreement, maintaining possession of the premises, holding all necessary permits and licenses, and being current with all financial obligations to Face Foundrie and its affiliates.
Furthermore, Face Foundrie retains certain rights during the franchise term. They can operate or franchise other Face Foundrie Facial Bars outside the franchisee's protected territory. They can also develop and franchise other businesses using trademarks different from the Face Foundrie marks, even within the protected territory. This reservation of rights gives Face Foundrie flexibility in its business operations and potential expansion strategies, which could impact a franchisee's market.