How is a Face Foundrie franchisee permitted to use information concerning their customers?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
mers are turned over to Franchisor; (c) agrees not to use or permit to be used said information concerning Franchisee's customers in any manner except in the performance of this Agreement; and (d) shall at all times maintain any information, including lists, relating to the customers of Franchisee separate and distinct from any customer information Franchisee may maintain that is unrelated to this Agreement. In addition to the obligations set forth above, upon termination of this Agreement for any reason, Franchisee shall immediately deliver to Franchisor all copies of lists of customers and copies of all other information concerning customers, including, but not limited to, all computer generated data regarding such customers, and neither Franchisee nor its directors, officers, Owners, managers, employees, successors and assigns shall use any said information concerning such customers to solicit any of such customers. All of the
information Franchisor or its Affiliates obtain from Franchisee or the Facial Bar, and all information in Franchisee's or Franchisor's records about the customers of the Facial Bar (the "Information") and all revenues Franchisor derives from the Information will be Franchisor's property. However, Franchisee may at any time during the term of this Agreement use it in the operation of the Facial Bar (but for no other purpose), to the extent lawful and at Franchisee's sole risk and responsibility, any information that Franchisee acquires from third parties in operating the Facial Bar, including customer data. The Information (except for information Franchisee provides to Franchisors or its affiliates about Franchisee and its Affiliates, including Franchisee's respective officers, directors, shareholders, partners, or Owners) will become Franchisor's property, which Franchisor may use for any reason Franchisor deems necessary or appropriate in its discretion. Franchisee hereby authorizes any software providers or other vendors to release this information to Franchisor at any time. After termination or expiration of this Agreement, Franchisee will no longer use any of the Information, except to comply with Franchisee's post-term obligations under this Agreement.
- 7.04 Personal Covenants of Restricted Parties. As a condition to the effectiveness of this Agreement, and at the time Franchisee delivers this signed Agreement to Franchisor, each Restricted Party must sign and deliver to Franchisor the Personal Covenants attached hereto as Exhibit E (the "Personal Covenants"), agreeing to be bound personally by all the provisions of Sections 7.01, 7.02, 7.03, 7.06 and 13.05 hereof. If there are any changes in the identity of any such Restricted Party while this Agreement is in effect, Franchisee must notify Franchisor promptly and cause the new Restricted Party to sign and deliver to Franchisor the Personal Covenants.
- 7.05 Agreements by Other Third Parties. As a condition to Franchisor's execution of this Agreement, Franchisee, if requested by Franchisor, shall cause its Operating Partner, each owner, officer and director (including their spouses), to execute a confidentiality, noncompetition, and/or nonsolicitation agreement in the form(s) approved or prescribed by Franchisor from time to time, which shall include specific identification of Franchisor as a third-party beneficiary of such covenants with the independent right to enforce them.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees can use customer information during the term of their Franchise Agreement to operate their Face Foundrie Facial Bar. This usage must be lawful and is at the franchisee's sole risk and responsibility. However, all information obtained from the franchisee or the Facial Bar, as well as information in the records about customers, becomes Face Foundrie's property, which Face Foundrie can use for any reason they deem necessary. Franchisees authorize software providers or other vendors to release this information to Face Foundrie at any time.
Upon termination or expiration of the Franchise Agreement, the franchisee must immediately hand over all customer lists and data to Face Foundrie. After the agreement ends, the franchisee is no longer allowed to use any of this information, except to fulfill post-term obligations outlined in the agreement. This includes refraining from soliciting any of these customers.
Furthermore, franchisees are restricted from reproducing, releasing, or furnishing any customer information to any person or entity that could be used to solicit sales. They must protect all customer information from disclosure, destruction, loss, or theft during the term of the agreement and until all copies are returned to Face Foundrie. The franchisee must also keep customer information separate from any other customer data they maintain that is unrelated to the Face Foundrie franchise. Face Foundrie and its affiliates own all information relating to clients and members, including names, addresses, buying habits, and demographic information, which is considered personal and confidential information that they may use in their business activities.