For Face Foundrie, what is the duration of the post-term non-competition agreement following the termination or expiration of the franchise agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Post-Term Non-Competition. In addition to and not in limitation of any other restrictions on Franchisee contained herein, Franchisee and the Restricted Parties agree that they will not, for two (2) years following the effective date of termination or expiration of this Agreement for any reason, or following the date of a Transfer by Franchisee, or, with respect to a Restricted Party only, by such Restricted Party, directly or indirectly, for and on behalf of itself, himself, herself or any other Person, without the prior written consent of Franchisor, (i) have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business or (ii) perform services as a director, officer, manager, employee, consultant, representative, agent, or otherwise for a Competitive Business which, in either case, is located or operating within a ten (10) mile radius of the protected territory of any Face Foundrié Facial Bar in operation or under construction on the effective date of termination or expiration.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees are subject to a post-term non-competition agreement. This agreement restricts the franchisee and related parties from engaging in competitive business activities for a period of two years after the franchise agreement's termination or expiration. This restriction also applies following a transfer of the franchise by the franchisee or a restricted party.
Specifically, the franchisee and restricted parties are prohibited from having any direct or indirect interest as an owner in a competitive business or performing services for a competitive business. This includes roles such as director, officer, manager, employee, consultant, representative, or agent.
This non-competition clause applies to businesses located or operating within a ten-mile radius of the protected territory of any Face Foundrie Facial Bar that is in operation or under construction on the date the franchise agreement terminates or expires. This means that after leaving the Face Foundrie system, a former franchisee cannot immediately open a similar business nearby.