What is the Face Foundrie Franchisor's consideration for granting the franchise?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
operation of law; (iv) any transfer upon death of Franchisee or of any of Franchisee's Owners by will, declaration of or transfer in trust or under the laws of intestate succession; or (v) any foreclosure upon the Facial Bar or the transfer, surrender of loss by Franchisee of possession, control or management of the Facial Bar.
2. GRANT OF RIGHTS.
- 2.01 Grant of Franchise. Subject to the terms of this Agreement, Franchisor grants to Franchisee the right, and Franchisee assumes the obligation, to operate a Facial Bar from the location set forth on Exhibit A hereto (the "Premises") and to use the System and the Marks solely in connection therewith, for a term of ten (10) years, commencing on the Effective Date of this Agreement (the "Term"). Franchisee may not conduct the business of the Facial Bar or use the System at any site other than the Premises, or relocate the Facial Bar, without Franchisor's prior written consent. Any approved relocation of the Facial Bar shall be at Franchisee's sole cost and expense, and Franchisor shall have the right to charge Franchisee a relocation fee equal to One Thousand Dollars ($1,000) plus any expenses Franchisor incurs in facilitating the relocation. The option for renewal of the rights granted to Franchisee in this Agreement is described in Section 15 below.
- 2.02 Protected Territory. During the Term, Franchisor will not operate (directly or through an Affiliate), nor grant to another Person the right to operate, any Face Foundrié Facial Bar located within the geographical area set forth on Exhibit A hereto (the "Protected Territory"). Notwithstanding the foregoing, Franchisor has the right to operate (directly or through an Affiliate), and to grant to others the right to operate, within the Protected Territory and elsewhere: (a) Face Foundrié Facial Bars or other businesses using any part or all of the System and/or Marks that are operating as of the Effective Date; and (b) businesses that Franchisor or its Affiliates purchase (or as to which Franchisor or its Affiliates purchases the rights as franchisor) that are part of another franchise system or chain and either continue to operate them independently or convert them to Face Foundrié Facial Bars.
- 2.03 Reservation of Rights. Notwithstanding anything to the contrary set forth herein, Franchisor retains the right, in its sole discretion, to:
- (a) establish and operate, and grant to other franchisees or licensees the right to establish and operate, a Face Foundrié Facial Bar or any other business using the Marks, the System or any variation of the Marks and the System, (i) in any location outside the Protected Territory or (ii) as contemplated by Section 2.02 above; in each case on any terms and conditions that Franchisor deems appropriate;
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the franchisor grants the franchisee the right to operate a Face Foundrié Facial Bar using the Face Foundrie system and marks. This right is granted subject to the terms of the Franchise Agreement, allowing the franchisee to operate a Facial Bar from a specific location for a term of ten years, commencing on the effective date of the agreement. The franchisee is obligated to operate the business and use the system only at the approved premises and cannot relocate without prior written consent from Face Foundrie. Any approved relocation will incur a fee of $1,000 plus any expenses Face Foundrie incurs during the relocation.
Face Foundrie also provides a protected territory to the franchisee, where it will not operate or grant others the right to operate a Face Foundrié Facial Bar during the term of the agreement. However, Face Foundrie retains certain rights, including the right to operate or franchise other businesses using the marks or system outside the protected territory, or businesses acquired that are part of another franchise system.
In exchange for these rights and considerations, the franchisee agrees to pay an initial franchise fee, as detailed in Exhibit A of the Franchise Agreement. This fee is non-refundable and is earned by Face Foundrie upon execution of the agreement, serving as consideration for granting the franchisee the right to develop, open, and operate the Facial Bar using the Face Foundrie marks and system. The franchisee also acknowledges the competitive nature of the beauty services industry and the business risks involved, understanding that their success depends on their abilities, efforts, and financial resources.