Is the Franchisee Acknowledgement exhibit applicable in California for a Face Foundrie franchise?
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 Face Foundrie's 2025 Franchise Disclosure Document, the Franchisee Acknowledgement exhibit is not applicable in California. The FDD explicitly states that if the offer or sale of the franchise is subject to state franchise registration/disclosure laws in California, among other states, then the Franchisee Acknowledgement document should not be signed and will not apply. This is because California has specific laws in place to protect franchisees, and the standard acknowledgement may conflict with those protections.
This means that if you are purchasing a Face Foundrie franchise in California, you will not be required to sign the Franchisee Acknowledgement. This acknowledgement is designed to determine if any unauthorized statements or promises were made to the franchisee, ensure proper representation, and confirm understanding of claim limitations. However, since California has its own franchise laws, this additional acknowledgement is deemed unnecessary.
Prospective franchisees in California should be aware of their rights and protections under California franchise law. They should also consult with a franchise attorney to ensure they fully understand the terms of the Franchise Agreement and their legal rights. This provision ensures compliance with state-specific franchise regulations and protects both the franchisor and franchisee by adhering to the legal requirements of the state in which the franchise is being established.