Does the Face Foundrie franchise agreement bind the Restricted Parties?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
ty, which Franchisor may use for any reason Franchisor deems necessary or appropriate in its discretion. Franchisee hereby authorizes any software providers or other vendors to release this information to Franchisor at any time. After termination or expiration of this Agreement, Franchisee will no longer use any of the Information, except to comply with Franchisee's post-term obligations under this Agreement.
- 7.04 Personal Covenants of Restricted Parties. As a condition to the effectiveness of this Agreement, and at the time Franchisee delivers this signed Agreement to Franchisor, each Restricted Party must sign and deliver to Franchisor the Personal Covenants attached hereto as Exhibit E (the "Personal Covenants"), agreeing to be bound personally by all the provisions of Sections 7.01, 7.02, 7.03, 7.06 and 13.05 hereof. If there are any changes in the identity of any such Restricted Party while this Agreement is in effect, Franchisee must notify Franchisor promptly and cause the new Restricted Party to sign and deliver to Franchisor the Personal Covenants.
- 7.05 Agreements by Other Third Parties. As a condition to Franchisor's execution of this Agreement, Franchisee, if requested by Franchisor, shall cause its Operating Partner, each owner, officer and director (including their spouses), to execute a confidentiality, noncompetition, and/or nonsolicitation agreement in the form(s) approved or prescribed by Franchisor from time to time, which shall include specific identification of Franchisor as a third-party beneficiary of such covenants with the independent right to enforce them. In addition, Franchisee shall require its Salon Manager(s), managers, assistant managers, and any other personnel having access to any confidential information of Franchisor to execute covenants that they will maintain the confidentiality of information they receive in connection with their employment or engagement by Franchisee at the Facial Bar. Such covenants shall be in a form approved by Franchisor, including specific identification of Franchisor as a third-party beneficiary of such covenants with the independent right to enforce them, the current form of which is attached hereto as Exhibit I. You must deliver copies of such completed agreements within three (3) days of our request.
- 7.06 Reasonable Restrictive Covenants. Franchisee and each Restricted Party acknowledge and agree that the covenants and restrictions in this Section 7 are reasonable, appropriate and necessary to protect the System, other Face Foundrié Facial Bars and the legitimate interest of Franchisor and its Affiliates, and (b) do not cause undue hardship on Franchisee or any of the other individuals required by this Section 7 to comply with the covenants and restrictions.
**8.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the franchise agreement does bind the Restricted Parties. As a condition of the agreement's effectiveness, each Restricted Party must sign and deliver the Personal Covenants (Exhibit E) to Face Foundrie, agreeing to be personally bound by specific sections of the agreement. These sections include 7.01, 7.02, 7.03, 7.06, and 13.05. If the identity of any Restricted Party changes while the agreement is in effect, the franchisee must promptly notify Face Foundrie and ensure the new Restricted Party signs and delivers the Personal Covenants.
Face Foundrie also requires franchisees, if requested, to have their Operating Partner, each owner, officer, and director (including their spouses) execute a confidentiality, noncompetition, and/or nonsolicitation agreement. These agreements must identify Face Foundrie as a third-party beneficiary with the independent right to enforce them. Additionally, franchisees must require their Salon Manager(s), managers, assistant managers, and any other personnel with access to confidential information to sign confidentiality agreements in a form approved by Face Foundrie, also identifying Face Foundrie as a third-party beneficiary with enforcement rights. Copies of these completed agreements must be delivered within three days of Face Foundrie's request.
Face Foundrie emphasizes that the covenants and restrictions within Section 7 of the agreement are reasonable, appropriate, and necessary to protect the System, other Face Foundrié Facial Bars, and the legitimate interests of Face Foundrie and its Affiliates. Furthermore, these covenants are designed not to cause undue hardship on the franchisee or any individuals required to comply with them. The agreement also states that it is intended to bind the Restricted Parties to the extent outlined within the agreement.