Is the grant of the Face Foundrie franchise dependent on any specific conditions?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee has the right, subject to the conditions contained in this Section 15, to acquire a successor franchise for the Facial Bar for one (1) additional ten (10) year term on the terms and conditions of the then-current form of franchise agreement for Face Foundrié Facial Bars, if upon expiration of the applicable Term: (a) Franchisee and its Owners and Affiliates are in compliance with this Agreement and any other agreements with Franchisor or any of its Affiliates, and Franchisee and its Owners have been in substantial compliance with this Agreement throughout the Term; (b) Franchisor has not notified Franchisee of its decision that any federal or applicable state legislation, regulation or rule, which is enacted, promulgated or amended after the date hereof, may have an adverse effect on Franchisor's rights, remedies or discretion in franchising Face Foundrié Facial Bars such that it creates an unreasonable or overly burdensome requirement on Franchisor's ability to continue to offer franchises in such location; and (c) the following additional conditions have been met: (i) Franchisee maintains the right to possession of the Premises for the term of the successor franchise agreement; (ii) Franchisee maintains all permits and licenses necessary to operate the Facial Bar; (iii) Franchisee is current in all obligations to Franchisor and its Affiliates, and System lessors, vendors and suppliers; and (iv) if required by Franchisor, Franchisee enters into an agreement with Franchisor whereby Franchisee agrees within a specified time period (not to exceed six (6) months), to send required personnel, at Franchisee's expense, to such training programs established and required by Franchisor. Upon the exercise of the right to acquire a successor franchise, Franchisee shall pay to Franchisor at the time of renewal a renewal fee equal to 25% of the then current initial franchise fee.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the grant of a successor franchise is subject to certain conditions. Specifically, to acquire a successor franchise for an additional ten-year term, the franchisee must meet several requirements upon the expiration of the current term. These include compliance with the existing Franchise Agreement and other agreements with Face Foundrie and its affiliates, as well as substantial compliance throughout the term.
Additionally, Face Foundrie must not have notified the franchisee of a decision that any enacted or amended legislation, regulation, or rule may adversely affect Face Foundrie's rights or ability to offer franchises in the location, creating an unreasonable burden. The franchisee must also maintain the right to possess the premises, hold all necessary permits and licenses, and be current in all obligations to Face Foundrie, its affiliates, and system vendors and suppliers.
Furthermore, if required by Face Foundrie, the franchisee must agree to send required personnel to training programs established by Face Foundrie within a specified time, at the franchisee's expense. Upon exercising the right to acquire a successor franchise, the franchisee is required to pay a renewal fee equal to 25% of the then-current initial franchise fee. These conditions ensure that Face Foundrie maintains consistent standards and protects its interests while allowing franchisees the opportunity to continue operating under the brand.