factual

Does the Face Foundrie Franchisee Acknowledgement require the franchisee to acknowledge Face Foundrie's right to engage in production, distribution, and sale?

Face_Foundrie Franchise · 2025 FDD

Answer from 2025 FDD Document

LANDLORD: TENANT:

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

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2025 FDD)

Based on the 2025 Face Foundrie Franchise Disclosure Document, the Franchise Agreement includes a section where Face Foundrie retains specific rights regarding the brand and its operations. Face Foundrie retains the right to establish and operate Face Foundrié Facial Bars, or grant others the right to do so, outside the franchisee's protected territory or as specified in another section of the agreement. This means Face Foundrie can expand its franchise network independently of the franchisee's territory. Face Foundrie also retains the right to develop, use, and franchise other trade names, trademarks, and service marks not designated as 'Marks' anywhere, including within the franchisee's protected territory, for similar or different businesses. This allows Face Foundrie to diversify its offerings without granting franchisees rights to these new ventures. Face Foundrie can also own, operate, franchise, or license businesses offering different products and services under different marks anywhere. This clause provides Face Foundrie with broad latitude to engage in various business activities without impacting the franchisee's rights. Face Foundrie retains the right to offer, distribute, sell, and provide products or services identified by the Marks to customers within the Protected Territory through any distribution channel, including online or through other retail channels, as long as these sales are not made from a Face Foundrié Facial Bar located within the Protected Territory. This allows Face Foundrie to engage in e-commerce and other distribution methods within the franchisee's territory.

According to the 2025 FDD, the franchisee acknowledges that Face Foundrie provides no site-selection assistance other than providing its criteria for site approval for the Facial Bar. The franchisee is responsible for identifying and acquiring a site acceptable to Face Foundrie for the Facial Bar's operation. This places the onus on the franchisee to find a suitable location that meets Face Foundrie's standards. The franchisee acknowledges having read the Franchise Agreement and Face Foundrie's franchise disclosure document and accepts that delivering high-quality beauty services and products requires a specific approach to services, products, and customer experience. The franchisee also acknowledges understanding the terms of the agreement and accepts them as reasonably necessary to maintain Face Foundrie's high-quality standards and protect the goodwill of the Marks and the System. The franchisee confirms they have conducted an independent investigation of the business and recognizes the beauty services industry is highly competitive with constantly changing market conditions. The franchisee acknowledges that the nature of Face Foundrié Facial Bars may change over time, that an investment involves business risks, and that the success of the venture depends largely on their own abilities, efforts, and financial resources. The franchisee or its Owners shall truthfully fill out the Franchisee Acknowledgment attached hereto as Exhibit H.

The 2025 Face Foundrie Franchise Disclosure Document states that the franchisee will receive and maintain in each of its employee's files an acknowledgement that the employee works for Franchisee and not Franchisor, and Franchisee will on a monthly basis or as otherwise requested by Franchisor acknowledge in writing to Franchisor that such acknowledgements have been completed and maintained in Franchisee's personnel files. The franchisee has no authority to employ or engage persons on behalf of Face Foundrie, and NO EMPLOYEES, INDEPENDENT CONTRACTORS OR AGENTS OF Franchisee are employees, independent contractors or agents of Franchisor for any purpose whatsoever. The franchisee will operate the Facial Bar in strict accordance with the standards, specifications, methods of service execution, and sales, marketing and advertising programs and techniques as specified by Face Foundrie, without the prior written consent of Face Foundrie. The franchisee will participate in all national, regional or local advertising and promotional activities Face Foundrie requires. The franchisee understands that Face Foundrie implements promotions such as discount coupons, certificates, frequent customer cards, special offering promotions, gift cards and other activities intended to enhance customer awareness of the System and build traffic at Face Foundrié Facial Bars on a national, regional or local level.

The 2025 Face Foundrie FDD includes Exhibit H, titled "FRANCHISEE ACKNOWLEDGEMENT", but the excerpt cuts off before detailing the specific acknowledgements required. Therefore, it is not possible to determine from this excerpt whether the franchisee specifically acknowledges Face Foundrie's rights to engage in production, distribution, and sale within that document. A prospective franchisee should carefully review Exhibit H of the Franchise Agreement to understand all acknowledgements required.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.