Does Face Foundrie have any limitations on assigning the Area Development Agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
sions of the franchise and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.**
Franchise Agreement
| Provision | Section(s) in | Summary | |
|---|---|---|---|
| Area Development Agreement | rights or obligations under the Area Development Agreement, or any material asset of your business, without our prior written consent, which shall be subject to all of the conditions and requirements for transfers set forth in the Franchise Agreement executed simultaneously with the Area Development Agreement that we deem applicable to a proposed transfer under the Area Development Agreement. | ||
| (l) Franchisor approval | Section 7.2 | We have the right to approve transfers. | |
| of transfer by area | |||
| developer | |||
| (m) Conditions for franchisor’s approval of transfer | Sections 7.2 and 7.3 | Unless waived, a transfer of the Area Development Agreement is conditioned on, among other factors, the requirement that the proposed transfer of the Area Development Agreement be made in conjunction with a simultaneous transfer of all existing Franchise Agreements to the same approved transferee. Additionally, your first Facial Bar under your first Franchise Agreement must be open and operating. | |
| (n) Franchisor’s right of | Not Applicable | ||
| first refusal to acquire | |||
| area developer’s | |||
| business | |||
| (o) Franchisor’s option to | Not Applicable | ||
| purchase area | |||
| developer’s business | |||
| (p) Death or disability of area developer | Section 5.2 | In the event your Operating Partner dies or becomes incapacitated, you must designate a new Operating Partner that owns at least a 20% ownership interest in you, subject to our approval. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, transferring rights or obligations under the Area Development Agreement, or any material asset of the business, requires Face Foundrie's prior written consent. This consent is subject to the conditions and requirements for transfers outlined in the Franchise Agreement, which is executed simultaneously with the Area Development Agreement. Face Foundrie retains the right to approve any transfers.
Unless waived by Face Foundrie, a transfer of the Area Development Agreement is conditional on the simultaneous transfer of all existing Franchise Agreements to the same approved transferee. Additionally, the first Facial Bar under the initial Franchise Agreement must be open and operating before a transfer can be approved.
In the event of the Area Developer's death or incapacitation, a new Operating Partner must be designated, owning at least a 20% ownership interest, subject to Face Foundrie's approval. Furthermore, during the term of the Area Development Agreement, the developer is prohibited from direct or indirect involvement in any competitive business. After termination or expiration, this non-competition extends for two years within a 10-mile radius of any Facial Bar.