What is the effect of the Face Foundrie franchise agreement on prior agreements?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.02 Notices. Franchisee must give Franchisor written notice of its desire to acquire a successor franchise not less than six (6) months nor more than nine (9) months prior to the expiration of this Agreement. Notwithstanding any notice or communication of Franchisor to Franchisee that Franchisee has the right to acquire a successor franchise for the Facial Bar, Franchisee's right will be subject to its continued compliance with all the provisions of this Agreement up to the date of its expiration. The written notice must include a plan to Franchisor outlining the Refurbishments that Franchisee plans to undertake prior to the expiration of this Agreement. Each such plan must be approved by Franchisor prior to Franchisee commencing any Refurbishments.
- 15.03 Agreements. If Franchisee has the right to acquire a successor franchise in accordance with Section 15.01 and states its desire to exercise that right in accordance with Section 15.02, Franchisor and Franchisee (and its Owners) will execute the form of franchise agreement (which may contain provisions, including royalty fees, materially different from those contained herein) and all ancillary agreements (including, personal guarantees by Franchisee's Owners on such terms as Franchisor determines to be appropriate) which Franchisor then customarily uses in granting franchises for the operation of Face Foundrié Facial Bars (collectively, the "New Agreements"), and Franchisee and its Owners must execute general releases, in form and substance satisfactory to Franchisor, of any and all claims against Franchisor, and its Affiliates, officers, directors, managers, employees, agents, successors and assigns. Failure by Franchisee (and its Owners) to sign such agreements and releases within thirty (30) days after delivery to Franchisee shall be deemed an election by Franchisee not to acquire a successor franchise for the Facial Bar.
- 15.04 Expiration. Any successor franchise shall be conditioned upon the satisfaction of the conditions set forth above in this Section. Upon the expiration of the Term, any renewal term will be governed by the New Agreements. If Franchisee fails to meet any of the conditions set forth this section 15, the franchise granted to Franchisee hereunder shall automatically expire at the end of the Term.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
Based on the 2025 Face Foundrie Franchise Disclosure Document, the franchise agreement outlines the conditions under which a franchisee can acquire a successor franchise. To acquire a successor franchise, the franchisee must provide written notice to Face Foundrie six to nine months before the current agreement expires, including a refurbishment plan for Face Foundrie's approval.
To obtain a successor franchise, the franchisee must comply with the existing agreement until its expiration. Face Foundrie and the franchisee must execute the then-current franchise agreement and ancillary documents, which may differ materially from the original agreement, including royalty fees. The franchisee must also provide general releases of claims against Face Foundrie. Failure to sign these agreements and releases within 30 days of delivery is considered an election not to acquire a successor franchise.
Upon the expiration of the initial term, any renewal term will be governed by these new agreements. If the franchisee does not meet the conditions for renewal, the original franchise agreement automatically expires at the end of its term. This ensures Face Foundrie can update its franchise terms and protect its interests as market conditions evolve.