What happens if a transfer of a Face Foundrie franchise occurs in violation of the agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.01 Franchisor's Approval. The rights and duties created by this Agreement are personal to Franchisee or, if Franchisee is an Entity, its Owners. Accordingly, neither Franchisee nor any of its Owners may Transfer the Facial Bar, the Premises, this Agreement or any of its rights or obligations hereunder, or suffer or permit any such Transfer of the Facial Bar, the Premises, this Agreement or its rights or obligations hereunder to occur by operation of law or otherwise without the prior written consent of Franchisor. In addition, if Franchisee is an Entity, its Owners may not Transfer their equity interests in such Entity, without the prior written consent of Franchisor. Furthermore, in the event that any Owner is an Entity, the interests of the shareholders, members, partners, beneficiaries, investors or other equity holders, as the case may be, in such Owner, may not be Transferred, without the prior written consent of Franchisor. Franchisor will not unreasonably withhold consent to a Transfer provided the requirements of Section 13.02 have been satisfied. Any Transfer in violation of this Section shall be void and of no force and effect.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, any transfer of the franchise, the premises, or the agreement itself, done without the prior written consent of Face Foundrie, is considered void and has no legal effect. This restriction applies not only to the franchisee but also to the owners of the franchisee entity and their equity interests. Even transfers of interests by shareholders, members, partners, beneficiaries, investors, or other equity holders within an owner entity require Face Foundrie's prior written consent.
This requirement means a Face Foundrie franchisee cannot sell their business, transfer the lease, or change ownership structure without explicit approval from Face Foundrie. This provision is designed to ensure that any new owner or partner meets Face Foundrie's standards and is capable of upholding the franchise agreement.
Face Foundrie will not unreasonably withhold consent to a transfer if the requirements outlined in Section 13.02 of the franchise agreement are met. These conditions likely involve ensuring that the franchisee is in compliance with the agreement, has paid all outstanding amounts, and that the proposed transferee meets Face Foundrie's criteria for franchisees. Prospective franchisees should carefully review Section 13.02 to understand the specific conditions for transfer approval and discuss any concerns with Face Foundrie during their due diligence.