What happens if a 'TBD' search area is designated for the Face Foundrie Development Area?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
If a "TBD" (to be determined) search area has been designated in Paragraph 2 of Exhibit A, Area Developer hereby authorizes Franchisor to designate the Development Area and complete Exhibit A subsequent to execution of this Agreement upon Franchisor approval of Area Developer's proposed territory.
Until Franchisor has so designated a Development Area, Area Developer will not have any rights to a protected territory.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, if a 'TBD' (to be determined) search area is designated in Paragraph 2 of Exhibit A of the Area Development Agreement, the Area Developer authorizes Face Foundrie to designate the Development Area and complete Exhibit A after the agreement is executed, pending Face Foundrie's approval of the Area Developer's proposed territory. Until Face Foundrie designates a Development Area, the Area Developer will not have rights to a protected territory.
This means that the Area Developer enters into the agreement without a guaranteed territory. The finalization of the Development Area is contingent on Face Foundrie's approval of the Area Developer's proposed territory. This introduces an element of uncertainty for the Area Developer, as their exclusive rights are pending the franchisor's decision.
Prospective Area Developers should carefully consider this provision and its implications for their business plans. It is crucial to engage in thorough discussions with Face Foundrie regarding the criteria and process for territory approval to mitigate potential risks and ensure alignment of expectations.