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Where in the Face Foundrie franchise agreement can I find information about the effect of termination or expiration?

Face_Foundrie Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 22: CONTRACTS]

16. EFFECT OF TERMINATION OR EXPIRATION.

16.01 Payment of Amounts Owed. Within ten (10) days after the effective date of termination or expiration (without Franchisee's successful exercise of the right to acquire a successor franchise) of this Agreement, Franchisee must pay Franchisor and its Affiliates all amounts owed thereto, including, without limitation, unpaid Royalty Fees, Marketing Contributions, Technology Fees, amounts owed for purchases from Franchisor or its Affiliates, and all other amounts due to Franchisor or its Affiliates and interest and late fees

due on any of the foregoing. In the event of termination for any default of Franchisee, such sums shall include all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of the default and termination.

  • 16.02 Discontinue Use of Marks and Confidential Information. Upon the termination or expiration (without Franchisee's successful exercise of the right to acquire a successor franchise) of this Agreement, Franchisee and its Owners will:

  • (a) Promptly, and in no event more than three (3) days after the termination or expiration of this Agreement, provide to Franchisor any and all information Franchisor requests regarding events, products or services to be provided by Franchisee or the Facial Bar after the date of expiration or termination, and at Franchisor's option, Franchisee will either (i) pay to Franchisor any amounts it has received from customers for events or products or services to be provided after the date of termination or expiration, and assign to Franchisor or its designee any contracts or related agreements to such events, products or services, or (ii) return such amounts to customers directly as well as any termination fees or penalties under such contracts.

Nothing herein will obligate Franchisor to take assignment of any obligations of Franchisee under any such contracts or relieve Franchisee of any liability for its obligations to customers or third parties after the termination or expiration of this Agreement;

  • (b) promptly return to Franchisor all material furnished by Franchisor containing proprietary or confidential information, operating instructions, business practices, or methods or procedures, including, without limitation, the Operations Manual;

  • (c) discontinue all use of the Marks, including at the Premises and on the vehicle, and the use of any and all signs, products, equipment and other items bearing the Marks.

Any signs containing the Marks that Franchisee is unable to remove within one (1) day of the termination or expiration of this Agreement shall be completely covered by Franchisee until the time of their removal, which shall be in any event within ten (10) days following the expiration or termination of this Agreement;

  • (d) at the option of Franchisor, assign to Franchisor any interest which Franchisee has in any lease or sublease for the Premises if Franchisee leases a location for the Facial Bar.

In the event Franchisor does not elect to exercise its option to acquire the lease or sublease for the Premises, Franchisee must, at Franchisee's expense, make such reasonable modifications to the exterior and interior décor of the Facial Bar and the Premises, and with respect to any vehicles, as Franchisor requires to eliminate its identification as a Face Foundrié Facial Bar.

If Franchisee fails to modify the exterior and interior décor of the Facial Bar, the Premises, and vehicles, as Franchisor requires to eliminate its identification as a Face Foundrié Facial Bar, Franchisor may take such action to modify the exterior and interior décor of the Facial Bar and the Premises and charge Franchisee for the cost of such action.

Franchisee shall immediately pay Franchisor for the cost of any action taken by Franchisor to modify the exterior and interior décor of the Facial Bar and the Premises;

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2025 FDD)

According to Face Foundrie's 2025 Franchise Disclosure Document, the effects of termination or expiration of the franchise agreement are detailed in Section 16 of Item 22, which covers contracts.

Specifically, Section 16.01 addresses the payment of amounts owed to Face Foundrie and its affiliates within ten days of termination or expiration. This includes unpaid royalty fees, marketing contributions, technology fees, and amounts owed for purchases, along with interest and late fees. If the termination results from the franchisee's default, the franchisee is liable for all damages, costs, expenses, and reasonable attorney's fees incurred by Face Foundrie.

Section 16.02 outlines the franchisee's obligations to discontinue using Face Foundrie's marks and confidential information upon termination or expiration. This includes providing requested information about post-termination events, products, or services, and at Face Foundrie's option, either paying Face Foundrie amounts received for services to be provided after termination or returning such amounts to customers directly. The franchisee must also return all proprietary or confidential materials, including the operations manual, and discontinue all use of Face Foundrie's marks, removing or covering any signs bearing those marks within specified timeframes. Additionally, Face Foundrie has the option to have the franchisee assign any interest in the lease for the premises to Face Foundrie. The franchisee is responsible for modifying the premises to eliminate its identification as a Face Foundrie Facial Bar, and if they fail to do so, Face Foundrie may take action and charge the franchisee for the costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.