What is the length of the additional term for a Face Foundrie successor franchise?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee has the right, subject to the conditions contained in this Section 15, to acquire a successor franchise for the Facial Bar for one (1) additional ten (10) year term on the terms and conditions of the then-current form of franchise agreement for Face Foundrié Facial Bars, if upon expiration of the applicable Term: (a) Franchisee and its Owners and Affiliates are in compliance with this Agreement and any other agreements with Franchisor or any of its Affiliates, and Franchisee and its Owners have been in substantial compliance with this Agreement throughout the Term; (b) Franchisor has not notified Franchisee of its decision that any federal or applicable state legislation, regulation or rule, which is enacted, promulgated or amended after the date hereof, may have an adverse effect on Franchisor's rights, remedies or discretion in franchising Face Foundrié Facial Bars such that it creates an
unreasonable or overly burdensome requirement on Franchisor's ability to continue to offer franchises in such location; and (c) the following additional conditions have been met: (i) Franchisee maintains the right to possession of the Premises for the term of the successor franchise agreement; (ii) Franchisee maintains all permits and licenses necessary to operate the Facial Bar; (iii) Franchisee is current in all obligations to Franchisor and its Affiliates, and System lessors, vendors and suppliers; and (iv) if required by Franchisor, Franchisee enters into an agreement with Franchisor whereby Franchisee agrees within a specified time period (not to exceed six (6) months), to send required personnel, at Franchisee's expense, to such training programs established and required by Franchisor. Upon the exercise of the right to acquire a successor franchise, Franchisee shall pay to Franchisor at the time of renewal a renewal fee equal to 25% of the then current initial franchise fee.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a franchisee has the right to acquire a successor franchise for an additional ten-year term. This right is contingent upon several conditions.
First, the franchisee, its owners, and affiliates must be in compliance with the existing Franchise Agreement and any other agreements with Face Foundrie or its affiliates. They also need to have demonstrated substantial compliance throughout the initial term. Second, Face Foundrie must not have determined that any new or amended legislation, regulation, or rule would adversely affect its ability to continue offering franchises in the location, creating unreasonable burdens.
Additionally, the franchisee must maintain the right to possess the premises, hold all necessary permits and licenses, and be current in all obligations to Face Foundrie, its affiliates, system lessors, vendors, and suppliers. If required by Face Foundrie, the franchisee must also agree to send required personnel to training programs at the franchisee's expense within a specified time period (not exceeding six months). Upon exercising the right to acquire a successor franchise, the franchisee must pay a renewal fee equal to 25% of the then-current initial franchise fee.