Does the Face Foundrie franchise agreement require disclosure of all material facts?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.03 Representations. Franchisee and its Owners, jointly and severally, represent and warrant to Franchisor that: (a) neither Franchisee nor any of its Owners have made any untrue statement of any material fact or has omitted to state any material fact in the written information submitted in obtaining the rights granted hereunder; (b) neither Franchisee nor any of its Owners have any direct or indirect legal or beneficial interest in any beauty-related business that may be deemed a Competitive Business, except as Franchisee has otherwise completely and accurately disclosed in writing to Franchisor in connection with obtaining the rights granted hereunder; and (c) the execution and performance of this Agreement will not violate any other agreement to which Franchisee or any of its Owners may be bound.
Franchisee recognizes that Franchisor has executed this Agreement in reliance on all of the statements Franchisee and its Owners have made in writing in connection with this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, the franchise agreement includes stipulations regarding the disclosure of material facts. Specifically, the franchisee and their owners represent and warrant to Face Foundrie that they have not made any untrue statement of material fact or omitted stating any material fact in the written information submitted to obtain franchise rights. This indicates that Face Foundrie places importance on the accuracy and completeness of information provided by the franchisee during the application process.
Furthermore, Face Foundrie acknowledges that it has executed the agreement in reliance on the written statements made by the franchisee and their owners. This highlights the legal weight given to the franchisee's representations and warranties. Any misrepresentation or omission could potentially lead to legal repercussions or a breach of the franchise agreement.
In addition, the Franchisee Acknowledgment form attached as Exhibit H requires the franchisee to confirm they have reviewed the Franchise Disclosure Document and understand the risks of operating a Face Foundrie franchise. They must also acknowledge that no employee of Face Foundrie has made any statements or promises regarding costs or potential profits that are not contained in the Disclosure Document. This further reinforces the importance of the FDD as the primary source of information and protects Face Foundrie from liability based on verbal representations not included in the official documents.
In summary, Face Foundrie emphasizes the importance of truthful and complete disclosure from prospective franchisees. The franchise agreement includes clauses that hold franchisees accountable for the accuracy of their statements and acknowledges the FDD as the comprehensive source of information for potential franchisees.