Does the Face Foundrie Franchisee Acknowledgement require the franchisee to acknowledge the risks of operating a Face Foundrie franchise?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.02 Acknowledgments. Franchisee acknowledges and agrees that it or its authorized officers have read this Agreement and Franchisor's franchise disclosure document. By signing this Agreement, Franchisee accepts the proposition that to deliver and execute high-quality services and products in connection with beauty-related services and products requires a specific approach to the services, products, and customer experience (impacted by the quality of people and training) not typically found in other beauty-related businesses. Franchisee understands the terms of this Agreement and accepts them as being reasonably necessary to maintain the uniformity of Franchisor's high-quality standards at all Face Foundrié Facial Bars in
order to protect and preserve the goodwill of the Marks and the integrity of the System. Franchisee has conducted an independent investigation of the business contemplated by this Agreement and recognizes that the beauty services industry is highly competitive, with constantly changing market conditions. Franchisee recognizes that the nature of Face Foundrié Facial Bars may change over time, that an investment in a Face Foundrié Facial Bar involves business risks, and that the success of the venture is largely dependent on Franchisee's own abilities, efforts and financial resources. Franchisee or its Owners shall truthfully fill out the Franchisee Acknowledgment attached hereto as Exhibit H.
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 does require the franchisee to acknowledge the risks associated with operating a Face Foundrie franchise. Specifically, the franchisee must acknowledge that investing in a Face Foundrie Facial Bar involves business risks and that the success of the venture depends largely on their own abilities, efforts, and financial resources. This acknowledgement is part of the broader agreement where the franchisee confirms they have conducted an independent investigation of the business and understand the competitive nature and changing market conditions of the beauty services industry.
This requirement ensures that prospective franchisees are fully aware of the potential challenges and uncertainties involved in the business. By signing the Franchisee Acknowledgement, franchisees confirm they are not entering the agreement based on unrealistic expectations or guarantees of success from Face Foundrie. This helps to protect both the franchisor and franchisee by setting a realistic foundation for the business relationship.
It is important to note that the Franchisee Acknowledgement includes a disclaimer stating that it should not be signed if the franchise is to be operated in, or the franchisee is a resident of, Maryland, or if the offer or sale of the franchise is subject to state franchise registration/disclosure laws in certain states (California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin). This suggests that in these specific locations, additional or alternative legal requirements may apply regarding franchisee acknowledgements and risk disclosures.