Can a Face Foundrie franchisee be relieved of liability for obligations to customers after termination of the agreement?

According to Face Foundrie's 2025 Franchise Disclosure Document, a franchisee is not relieved of liability for obligations to customers or third parties after the termination or expiration of the Franchise Agreement. Specifically, even if Face Foundrie takes assignment of contracts with customers, the franchisee remains liable for their obligations.

This means that if a Face Foundrie franchisee has outstanding obligations to customers, such as services not yet rendered or products not yet delivered, the franchisee remains responsible for fulfilling those obligations even after the franchise agreement ends. This responsibility exists regardless of whether Face Foundrie takes over the contracts related to those obligations.

For a prospective Face Foundrie franchisee, this clause highlights the importance of fulfilling all customer obligations before the termination or expiration of the agreement. Failure to do so could result in continued liability and potential legal issues even after the franchise is no longer operating. Franchisees should carefully manage their customer contracts and ensure all services and products are delivered as promised to avoid post-termination liabilities.