Does the Face Foundrie Franchise Agreement include a Lease Rider as an exhibit?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
This Lease Rider (this "Rider") and the provisions hereof are hereby incorporated into the body of the lease to which this Rider is attached (the "Lease"), and the provisions hereof shall be cumulative of those set forth in the Lease, but to the extent of any conflict between any provisions of this Rider and the provisions of the Lease, this Rider shall govern and control.
Consent to Collateral Assignment to Franchisor; Disclaimer.
Landlord acknowledges that Tenant intends to operate a Face Foundrié Facial Bar in the Premises and that Tenant's rights to operate a Face Foundrié Facial Bar and to use the Face Foundrié Facial Bar name, trademarks and service marks are solely pursuant to a franchise agreement ("Franchise Agreement'') between Tenant and Face Foundrié Franchising L.L.C. ("Franchisor").
Tenant's operations at the Premises are independently owned and operated.
Landlord acknowledges that Tenant alone is responsible for all obligations under the Lease unless and until Franchisor or another franchisee expressly assumes such obligations and takes actual possession of the Premises.
Notwithstanding any provisions of this Lease to the contrary, Landlord hereby consents, without payment of a fee and without the need for further Landlord consent, to (a) the collateral assignment of Tenant's interest in this Lease to Franchisor to secure Tenant's obligations to Franchisor under the Franchise Agreement, and/or (b) Franchisor's succeeding to Tenant's interest in the Lease as a result of Franchisor's exercise of rights or remedies under such collateral assignment or as a result of Franchisor's termination of, or exercise of rights or remedies granted in or under, the Franchise Agreement or any other agreement between Franchisor and Tenant, and/or (c) Tenant's, Franchisor's and/or any other franchisee of Franchisor's assignment of the Lease to another franchisee of Franchisor with whom Franchisor has executed its then-standard franchise agreement.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, a Lease Rider is incorporated into the lease agreement for the premises. The Lease Rider supplements the main lease, and in case of conflicts, the Lease Rider's provisions take precedence.
Several key clauses are included in the Lease Rider to protect Face Foundrie's interests. The landlord consents to the collateral assignment of the tenant's (franchisee's) interest in the lease to Face Foundrie Franchising L.L.C. This allows Face Foundrie to secure the franchisee's obligations under the Franchise Agreement. The rider also covers scenarios where Face Foundrie might take over the lease due to the franchisee's default or termination of the Franchise Agreement. Furthermore, the landlord agrees that the lease cannot be terminated, modified, or amended without Face Foundrie's prior written consent, ensuring Face Foundrie maintains control over the lease terms.
These stipulations in the Lease Rider provide Face Foundrie with significant control and protection regarding the location of the franchise. By having the ability to assume the lease and requiring consent for modifications, Face Foundrie mitigates risks associated with franchisee default or lease disputes, ensuring business continuity and safeguarding their brand's presence.