What is the geographic limit of the Protected Territory granted to a Face Foundrie franchisee?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
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:
| 1. | The approved location (Premises) of the Facial Bar shall be: |
|---|---|
| If no | |
| approved | |
| location has been determined at the time this Franchise Agreement is executed, | |
| then the Premises will be within the following area, provided the exact location will be subject | |
| to Franchisor's review and approval, and Franchisee authorizes Franchisor to define the | |
| Protected Territory | |
| and complete this Exhibit A | |
| upon Franchisor's approval of a location: | |
| 2. | The Protected Territory shall be (subject to the terms of the Agreement, including but not limited to |
| Section 2.03 | |
| of the Agreement) as follows, and which Protected Territory is reflected on the map attached | |
| to this Exhibit A: |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the geographic limit of the protected territory granted to a franchisee is defined in Exhibit A of the Franchise Agreement. During the term of the agreement, Face Foundrie will not operate or grant to another person the right to operate a Face Foundrie Facial Bar within the geographical area outlined in Exhibit A.
However, Face Foundrie retains certain rights within the protected territory. They can operate or grant others the right to operate Face Foundrie Facial Bars or other businesses using the Face Foundrie system or marks if those businesses were already operating as of the effective date of the agreement. Additionally, Face Foundrie can operate or franchise businesses they acquire, even if those businesses are part of another franchise system or chain, and either continue to operate them independently or convert them to Face Foundrie Facial Bars.
Exhibit A is completed by Face Foundrie after they approve a site for the franchise. The franchisee authorizes Face Foundrie to define the protected territory in Exhibit A upon site approval. If no approved location has been determined when the Franchise Agreement is executed, the premises will be within an area subject to Face Foundrie's review and approval, and Face Foundrie will define the protected territory and complete Exhibit A upon location approval.