What is the Face Foundrie franchisee's obligation regarding agreements with the Operating Partner?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall provide Franchisor with a copy of any proposed arrangement, agreement or contract, and all amendments thereto, with the Operating Partner for Franchisor's prior review and approval, and upon approval thereof, executed copies thereof.
Franchisor shall have no responsibility, liability or obligation to any party to any such arrangement, agreement or contract, or any amendments thereto, on account of Franchisor's approval thereof or otherwise, and Franchisee agrees to indemnify and hold Franchisor harmless with respect thereto.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a franchisee must designate an Operating Partner who meets specific criteria. This individual must be approved by Face Foundrie, own or have the right to own at least 20% of the franchisee's equity and voting rights, possess the authority to make operational decisions for the Facial Bar, and complete Face Foundrie's training program. The Operating Partner is required to dedicate their full-time efforts to the Facial Bar and cannot engage in other conflicting business activities without Face Foundrie's approval.
The franchisee is obligated to provide Face Foundrie with copies of any proposed arrangements, agreements, or contracts with the Operating Partner, including all amendments, for the franchisor's review and approval. Once approved, the franchisee must provide executed copies of these documents to Face Foundrie. However, Face Foundrie assumes no responsibility or liability to any party involved in these agreements, and the franchisee agrees to indemnify and hold Face Foundrie harmless in relation to these arrangements.
This requirement ensures that Face Foundrie maintains oversight and control over the management and operation of each franchised location. By reviewing and approving agreements with the Operating Partner, Face Foundrie can ensure that the individual in charge meets their standards and is committed to the brand. The indemnification clause protects Face Foundrie from potential legal or financial liabilities arising from the franchisee's agreements with their Operating Partner. This arrangement is fairly typical in franchising, where the franchisor seeks to maintain brand standards and limit their liability.