Is the Franchisee Acknowledgement (Exhibit H) applicable to Face Foundrie franchisees in California?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
FACE FOUNDRIÉ FRANCHISING L.L.C. FRANCHISE AGREEMENT EXHIBIT H FRANCHISEE ACKNOWLEDGEMENT
FRANCHISEE ACKNOWLEDGEMENT
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 H) is not applicable to franchisees in California. The document explicitly states that if the offer or sale of the franchise is subject to state franchise registration/disclosure laws in California, then this document should not be signed and will not apply.
This means that prospective Face Foundrie franchisees in California will not be required to sign the Franchisee Acknowledgement. The purpose of this acknowledgement is to ensure that franchisees understand the limitations on claims they can make regarding the purchase and operation of their franchise and to confirm that no unauthorized promises were made to them. However, since California has its own franchise laws and disclosure requirements, Face Foundrie uses a different approach to ensure compliance and protect both the franchisor and franchisee.
For a Face Foundrie franchisee, this exception simplifies the initial paperwork. However, it is important to note that California's franchise laws provide similar protections and disclosures. Franchisees in California should still carefully review the Franchise Agreement and Franchise Disclosure Document, seek legal counsel, and conduct thorough due diligence before investing in a Face Foundrie franchise.