Is the Face Foundrie Franchisee Acknowledgement (Exhibit H) applicable in California?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS DOCUMENT SHALL NOT BE SIGNED BY YOU, AND WILL NOT APPLY, IF THE OFFER OR SALE OF THE FRANCHISE IS SUBJECT TO THE STATE FRANCHISE REGISTRATION/DISCLOSURE LAWS IN THE STATES OF CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie FDD, the Franchisee Acknowledgement (Exhibit H) is not applicable if the offer or sale of the franchise is subject to state franchise registration/disclosure laws in California. This means that if you are purchasing a Face Foundrie franchise in California, you will not be required to sign the Franchisee Acknowledgement.
The document explicitly states that it should not be signed, and will not apply, if the franchise is subject to franchise registration/disclosure laws in California, as well as other states listed. This is likely because California franchise law provides certain protections to franchisees, making the acknowledgement redundant or potentially conflicting with state law.
Prospective franchisees in California should take note that this acknowledgement is not part of their franchise agreement. This could affect their rights and obligations compared to franchisees in states where the acknowledgement is required. Franchisees should carefully review all other documents within the franchise agreement to understand their full legal obligations.