What form must each Principal of a Face Foundrie Area Developer execute?

According to Face Foundrie's 2025 Franchise Disclosure Document, each Principal of an Area Developer must execute a guaranty, indemnification, and acknowledgment of the Area Developer's obligations under the Area Development Agreement. This document is in the form attached as Exhibit C to the agreement.

In practical terms, this means that if the Area Developer is a corporation, LLC, or partnership, each individual with a beneficial ownership interest (a Principal) must personally guarantee the Area Developer's performance. This is a common practice in franchising, as it ensures that the franchisor has recourse to the personal assets of the individuals behind the Area Developer entity, not just the entity's assets.

The guaranty, indemnification, and acknowledgment likely make each Principal personally liable for the Area Developer's financial and operational obligations to Face Foundrie. This could include the Area Developer's payment of fees, adherence to development schedules, and compliance with all terms of the Area Development Agreement. Prospective Area Developers should carefully review Exhibit C with their legal counsel to fully understand the scope of this personal guarantee and its potential implications.