What is the geographic limit of the non-competition covenant after the Face Foundrie franchise is terminated or expires?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in | Summary | |
|---|---|---|---|
| Area Development Agreement | rights or obligations under the Area Development Agreement, or any material asset of your business, without our prior written consent, which shall be subject to all of the conditions and requirements for transfers set forth in the Franchise Agreement executed simultaneously with the Area Development Agreement that we deem applicable to a proposed transfer under the Area Development Agreement. | ||
| (l) Franchisor approval | Section 7.2 | We have the right to approve transfers. | |
| of transfer by area | |||
| developer | |||
| (m) Conditions for franchisor’s approval of transfer | Sections 7.2 and 7.3 | Unless waived, a transfer of the Area Development Agreement is conditioned on, among other factors, the requirement that the proposed transfer of the Area Development Agreement be made in conjunction with a simultaneous transfer of all existing Franchise Agreements to the same approved transferee. Additionally, your first Facial Bar under your first Franchise Agreement must be open and operating. | |
| (n) Franchisor’s right of | Not Applicable | ||
| first refusal to acquire | |||
| area developer’s | |||
| business | |||
| (o) Franchisor’s option to | Not Applicable | ||
| purchase area | |||
| developer’s business | |||
| (p) Death or disability of area developer | Section 5.2 | In the event your Operating Partner dies or becomes incapacitated, you must designate a new Operating Partner that owns at least a 20% ownership interest in you, subject to our approval. | |
| (q) Non-competition covenants during the term of the franchise | Section 8.2 | No direct or indirect involvement in competitive business. | |
| (r) Non-competition covenants after the franchise is terminated or expires | Section 8.3 | For two years, no involvement in competitive business located within a 10-mile radius of any Facial Bar. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, if the franchise is terminated or expires, the franchisee is restricted from involvement in any competitive business within a 10-mile radius of any Face Foundrie Facial Bar. This restriction lasts for two years.
This means that after leaving the Face Foundrie system, a former franchisee cannot operate or be involved in a similar business that offers comparable services within that 10-mile radius. This could significantly limit the franchisee's options if they wish to remain in the same geographic area and industry after the franchise agreement ends.
Non-compete clauses are common in franchising to protect the brand and prevent franchisees from using the franchisor's confidential information and business model to compete against the system. The specific terms, including the duration and geographic scope, can vary widely among different franchise systems. Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities.