Does the Face Foundrie franchise agreement grant exclusive rights to a specific territory?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
operation of law; (iv) any transfer upon death of Franchisee or of any of Franchisee's Owners by will, declaration of or transfer in trust or under the laws of intestate succession; or (v) any foreclosure upon the Facial Bar or the transfer, surrender of loss by Franchisee of possession, control or management of the Facial Bar.
2. GRANT OF RIGHTS.
- 2.01 Grant of Franchise. Subject to the terms of this Agreement, Franchisor grants to Franchisee the right, and Franchisee assumes the obligation, to operate a Facial Bar from the location set forth on Exhibit A hereto (the "Premises") and to use the System and the Marks solely in connection therewith, for a term of ten (10) years, commencing on the Effective Date of this Agreement (the "Term"). Franchisee may not conduct the business of the Facial Bar or use the System at any site other than the Premises, or relocate the Facial Bar, without Franchisor's prior written consent. Any approved relocation of the Facial Bar shall be at Franchisee's sole cost and expense, and Franchisor shall have the right to charge Franchisee a relocation fee equal to One Thousand Dollars ($1,000) plus any expenses Franchisor incurs in facilitating the relocation. The option for renewal of the rights granted to Franchisee in this Agreement is described in Section 15 below.
- 2.02 Protected Territory. During the Term, Franchisor will not operate (directly or through an Affiliate), nor grant to another Person the right to operate, any Face Foundrié Facial Bar located within the geographical area set forth on Exhibit A hereto (the "Protected Territory"). Notwithstanding the foregoing, Franchisor has the right to operate (directly or through an Affiliate), and to grant to others the right to operate, within the Protected Territory and elsewhere: (a) Face Foundrié Facial Bars or other businesses using any part or all of the System and/or Marks that are operating as of the Effective Date; and (b) businesses that Franchisor or its Affiliates purchase (or as to which Franchisor or its Aff
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, franchisees are granted a protected territory. Specifically, Face Foundrie agrees not to operate a Face Foundrie Facial Bar, nor grant another person the right to operate one, within the franchisee's protected territory during the term of the agreement. The specifics of the protected territory's geographical area are detailed in Exhibit A of the Franchise Agreement.
However, Face Foundrie retains certain rights within the protected territory. They can operate or grant others the right to operate Face Foundrie Facial Bars or other businesses using the Face Foundrie system or marks if those businesses were already operating as of the agreement's effective date. This also applies to businesses that Face Foundrie or its affiliates purchase and either continue to operate independently or convert to Face Foundrie Facial Bars.
Face Foundrie also retains the right to offer and sell products and services identified by their marks to customers within the protected territory through various distribution channels. These channels include the internet, smartphone applications, mail order, telemarketing, mass merchandise stores, and supermarkets. However, these sales cannot be made from a Face Foundrie Facial Bar located within the protected territory. This reservation of rights gives Face Foundrie flexibility in how it reaches customers, but it also means that a franchisee's protected territory is not entirely exclusive.