Does Face Foundrie grant franchisees an exclusive territory?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 12: TERRITORY]
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As a result of our reserved rights described in this Item 12, you will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we or our affiliates own, or from other channels of distribution or competitive brands that we or our affiliates control. You have no options, rights of first refusal or similar rights to acquire additional franchises or establish additional Facial Bars. We are not obligated to pay compensation to you for soliciting customers from your franchise territory. We have not established any minimum sales quota and do not require any certain level of sales, revenue volume or market penetration in order for you to maintain your Territory. We will not reduce the size of your Territory even if the population in it increases. Likewise, we will not expand the size of your Territory if the population in it decreases. We cannot alter your Territory unless you give us your written consent. Without our prior written consent, you may not conduct sales activities outside your Territory. You may not conduct any Facial Bar activities outside of the premises of your Facial Bar unless we have approved such activities in writing, and you may not use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, to make sales outside of your Territory.
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Source: Item 12 — TERRITORY (FDD pages 43–46)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the franchise agreement grants the franchisee the right to operate a Facial Bar at a specific location approved by Face Foundrie. The agreement may also specify a protected territory. While Face Foundrie states that they will not operate a Facial Bar or grant a third party the right to operate one within a franchisee's territory as long as the franchisee is in compliance with the agreement, the FDD also states that franchisees will not receive an exclusive territory.
The territory size for Face Foundrie is not a fixed radius but is determined during the site confirmation process, considering factors like whether the location is urban or suburban, the population, competition, and Face Foundrie's policies. Territories generally contain a population of up to 40,000 individuals and range from a one to three-mile radius around the Facial Bar.
However, Face Foundrie and its affiliates retain the right to establish and operate franchises or company-owned outlets selling similar products and services, even within a franchisee's territory, under different names and symbols. They also reserve the right to distribute products or offer services using the Marks through various channels, including the internet and retail chains, both within and outside the franchisee's territory, as long as it is not through the operation of a Facial Bar.
This means that while Face Foundrie franchisees may have a protected territory, they could still face competition from other franchisees, outlets owned by Face Foundrie or its affiliates, other distribution channels, or competitive brands controlled by Face Foundrie or its affiliates. The franchisee has no rights to acquire additional franchises or establish additional Facial Bars and Face Foundrie is not obligated to pay compensation for soliciting customers from a franchisee's territory.