How is the Expiration Date defined for the Face Foundrie Area Development Agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless sooner terminated in accordance with the provisions of this Agreement, this Agreement shall commence on the date hereof and shall expire on the earlier of (i) the date the final Franchise Agreement is executed by Area Developer in accordance with the required minimum cumulative number of Franchise Agreements to be executed for Franchised Facial Bars to be located in the Development Area as set forth in the Development Schedule, as shown in Paragraph 1 of Exhibit A; or (ii) the final date set forth in the Development Schedule, as shown in Paragraph 1 of Exhibit A (the "Expiration Date").
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Expiration Date for the Area Development Agreement is defined in Section 2 of the agreement. It is the earlier of two dates: (i) the date the final Franchise Agreement is executed by the Area Developer, which must align with the minimum number of Franchise Agreements required for Franchised Facial Bars in the Development Area, as detailed in the Development Schedule (Paragraph 1 of Exhibit A), or (ii) the final date specified in the Development Schedule itself (Paragraph 1 of Exhibit A).
In simpler terms, the Area Development Agreement ends either when the Area Developer has opened the minimum number of Face Foundrie locations required by the Development Schedule, or on the final date outlined in that schedule, whichever comes first. This means an Area Developer must adhere to the timelines and development milestones set forth in the Development Schedule to fully realize the benefits of the agreement.
This definition of the Expiration Date is important for prospective Area Developers because it sets clear expectations and deadlines for developing Face Foundrie locations within the designated area. Failing to meet the development obligations within the specified timeframe could result in the termination of the agreement, potentially leading to a loss of rights to develop further locations and the forfeiture of area development fees paid to Face Foundrie. Therefore, a careful review of the Development Schedule and a realistic assessment of one's ability to meet those obligations are crucial before entering into an Area Development Agreement with Face Foundrie.