What happens to the post-termination obligations of a Face Foundrie franchisee if the franchisee terminates the agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.01 Termination by Franchisee. Franchisee may terminate this Agreement if Franchisee is in substantial compliance with this Agreement and Franchisor materially breaches this Agreement and fails to cure such material breach within ninety (90) days after written notice thereof is delivered to Franchisor.
Notwithstanding the foregoing, if the breach is curable but is of a nature that cannot reasonably be cured within such ninety (90) day period and Franchisor has commenced and is continuing to make good faith efforts to cure such breach, Franchisor shall be given an additional sixty (60) day period to cure the same, and this Agreement shall not terminate.
In the event of termination by Franchisee, all post-termination obligations of Franchisee described herein shall not be waived but shall be strictly adhered to by Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, if a franchisee terminates the franchise agreement, all post-termination obligations described in the agreement must be strictly adhered to by the franchisee. The franchisee can only terminate the agreement if they are in substantial compliance with the agreement, and Face Foundrie materially breaches the agreement and fails to correct the breach within 90 days after written notice is delivered to Face Foundrie. If the breach is curable but cannot be reasonably cured within 90 days, Face Foundrie is given an additional 60 days to cure the breach as long as Face Foundrie has commenced and continues to make good faith efforts to cure the breach.
Upon termination of the Face Foundrie franchise agreement for any reason, the franchisee must immediately deliver to Face Foundrie all copies of customer lists and any other customer information, including computer-generated data. The franchisee is prohibited from using this customer information to solicit customers. All information that Face Foundrie obtains from the franchisee or the Facial Bar, as well as all information in the franchisee's or Face Foundrie's records about the customers of the Facial Bar, becomes Face Foundrie's property. After termination or expiration of the agreement, the franchisee can no longer use any of this information, except to comply with post-term obligations under the agreement.
Within ten days after the termination date, the Face Foundrie franchisee must pay all outstanding amounts owed to Face Foundrie, including unpaid Royalty Fees, Marketing Contributions, Technology Fees, amounts owed for purchases from Face Foundrie, and any interest and late fees. If the termination is due to the franchisee's default, the franchisee must also pay all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Face Foundrie as a result of the default and termination. The franchisee must also promptly return all materials furnished by Face Foundrie that contain proprietary or confidential information, operating instructions, business practices, or methods and procedures, including the Operations Manual, and discontinue all use of the Face Foundrie marks.
Furthermore, the Face Foundrie franchisee must refrain from operating under any name or manner that may give the impression that the agreement is still in effect or that the franchisee is connected with Face Foundrie. The franchisee must not represent themselves as a present or former operator of Face Foundrie in connection with any other business. All obligations under the agreement that expressly or by their nature survive the termination of the agreement will continue in full force and effect until they are satisfied in full or expire by their nature.