Where in the Face Foundrie franchise agreement can I find information about the conditions for approval of a transfer?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.02 Conditions for Approval. If Franchisor has not exercised its right of first refusal under Section 13.05, Franchisor will not unreasonably withhold its approval of a Transfer that meets all of the reasonable restrictions, requirements and conditions Franchisor may impose on the Transfer, the transferor(s) and/or the transferee(s), including the following:
- (a) Franchisee and its Owners and Affiliates must be in compliance with the provisions of this Agreement and all other agreements with Franchisor or any of its Affiliates and have paid all outstanding amounts owed thereto, as well as to the approved suppliers to the System;
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Section 13.02 of the Franchise Agreement outlines the conditions for approval of a transfer. It indicates that Face Foundrie will not unreasonably withhold approval of a transfer if the requirements are met, provided Face Foundrie has not already exercised its right of first refusal as detailed in Section 13.05.
The conditions for approval include meeting all reasonable restrictions, requirements, and conditions that Face Foundrie may impose on the transfer, the transferor(s), and/or the transferee(s). This encompasses ensuring that the franchisee, its owners, and affiliates are in full compliance with all provisions of the Franchise Agreement and any other agreements with Face Foundrie or its affiliates.
Furthermore, all outstanding amounts owed to Face Foundrie, its affiliates, and approved suppliers to the Face Foundrie system must be paid. This means a prospective franchisee needs to carefully review Section 13.02 to understand all potential obligations and ensure compliance to facilitate a smooth transfer process.