Does the Face Foundrie franchise agreement specify any restrictions on the distribution channels Face Foundrie can use within the Protected Territory?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
(d) offer, distribute, sell and provide products or services identified by the Marks or other trademarks, service marks, commercial symbols or emblems to customers located in the Protected Territory through any distribution channel or method, including through the Internet or worldwide web (or any other existing or future form of electronic commerce), through smart phone or other digital applications, mail order or catalogs, through telemarketing or other direct marketing, through mass merchandise, convenience stores, supermarkets, grocery stores, convenience stores, and club stores; provided, however, that any such sales will not be made from a Face Foundrié Facial Bar located in the Protected Territory.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, Face Foundrie retains the right to distribute products and services within the franchisee's protected territory through various channels. This includes online sales via the internet or smartphone applications, as well as traditional methods like mail order, catalogs, telemarketing, and sales through mass merchandise, convenience stores, supermarkets, grocery stores and club stores.
However, there is a specific restriction: Face Foundrie cannot make these sales from a physical Face Foundrié Facial Bar located within the franchisee's protected territory. This means that while Face Foundrie can utilize various distribution methods, it cannot directly compete with the franchisee's brick-and-mortar location within its territory using another physical outlet.
This reservation of rights allows Face Foundrie to adapt to changing market conditions and consumer preferences by utilizing multiple distribution channels. For a potential franchisee, this means understanding that Face Foundrie can sell within their territory through channels they don't control, which could impact their revenue. However, it also prevents Face Foundrie from opening another physical location that directly competes with the franchisee's Facial Bar within the protected territory.