If a Face Foundrie Area Developer's default is not cured, what rights are terminated?

According to Face Foundrie's 2025 Franchise Disclosure Document, if an Area Developer fails to cure a default within the specified timeframe, the Area Developer Agreement and all rights granted under it will terminate. This includes the right to develop new Face Foundrie Facial Bars. The termination is effective immediately upon the expiration of the 30-day cure period or any longer period required by applicable law, without any further notice to the Area Developer.

This means that the Area Developer loses the ability to expand their Face Foundrie business by opening new locations within their designated area. They also forfeit any exclusivity or territorial protections they may have had, allowing Face Foundrie to establish or franchise others to establish locations within the Area Developer's former territory. This can significantly impact the Area Developer's potential revenue and market share.

It is important for prospective Area Developers to understand the terms and conditions that constitute a default under the Area Developer Agreement, as well as the steps required to cure such defaults. Failure to do so can result in the loss of valuable development rights and the potential for Face Foundrie to compete directly within the Area Developer's former territory. Area Developers should also be aware of any applicable state laws that may provide for a longer cure period than the 30 days specified in the agreement.