Where can I find the specific provisions of the Face Foundrie franchise agreement mentioned in Item 17?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in | Summary | |
|---|---|---|---|
| Area Development Agreement | rights or obligations under the Area Development Agreement, or any material asset of your business, without our prior written consent, which shall be subject to all of the conditions and requirements for transfers set forth in the Franchise Agreement executed simultaneously with the Area Development Agreement that we deem applicable to a proposed transfer under the Area Development Agreement. | ||
| (l) Franchisor approval | Section 7.2 | We have the right to approve transfers. | |
| of transfer by area | |||
| developer | |||
| (m) Conditions for franchisor’s approval of transfer | Sections 7.2 and 7.3 | Unless waived, a transfer of the Area Development Agreement is conditioned on, among other factors, the requirement that the proposed transfer of the Area Development Agreement be made in conjunction with a simultaneous transfer of all existing Franchise Agreements to the same approved transferee. Additionally, your first Facial Bar under your first Franchise Agreement must be open and operating. | |
| (n) Franchisor’s right of | Not Applicable | ||
| first refusal to acquire | |||
| area developer’s | |||
| business | |||
| (o) Franchisor’s option to | Not Applicable | ||
| purchase area | |||
| developer’s business | |||
| (p) Death or disability of area developer | Section 5.2 | In the event your Operating Partner dies or becomes incapacitated, you must designate a new Operating Partner that owns at least a 20% ownership interest in you, subject to our approval. | |
| (q) Non-competition covenants during the term of the franchise | Section 8.2 | No direct or indirect involvement in competitive business. | |
| (r) Non-competition covenants after the franchise is terminated or expires | Section 8.3 | For two years, no involvement in competitive business located within a 10-mile radius of any Facial Bar. | |
| Provision | Section(s) in Area Development Agreement | Summary | |
| (s) Modification of the agreement | Section 15 | Except for those permitted to be made unilaterally by us hereunder, no amendment, change, or variance from the Area Development Agreement will be binding on either party unless mutually agreed to by the parties and executed by their authorized officers or agents in writing. | |
| (t) Integration/merger clause | Section 15 | Only the terms of the Area Development Agreement and other related wr |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, specific provisions pertaining to Item 17, which covers renewal, termination, transfer, and dispute resolution, can be found in the Area Development Agreement.
Item 17 outlines various aspects of the franchise agreement and refers to specific sections within the Area Development Agreement for detailed information. For instance, Section 7.2 addresses Face Foundrie's right to approve transfers, while Sections 7.2 and 7.3 detail the conditions for Face Foundrie's approval of a transfer, such as the simultaneous transfer of all existing Franchise Agreements to the same approved transferee and the operation of the first Facial Bar under the initial Franchise Agreement. Section 5.2 discusses the procedure in the event of the death or incapacitation of an Operating Partner, requiring the designation of a new Operating Partner with at least a 20% ownership interest, subject to Face Foundrie's approval.
Furthermore, Section 8.2 outlines non-competition covenants during the term of the franchise, prohibiting direct or indirect involvement in competitive businesses. Section 8.3 details non-competition covenants after the franchise is terminated or expires, restricting involvement in competitive businesses within a 10-mile radius of any Facial Bar for two years. Section 15 specifies that modifications to the Area Development Agreement must be mutually agreed upon in writing, and it also includes an integration/merger clause, indicating that only the terms of the Area Development Agreement and other related written agreements are binding.