For how long is involvement in a competitive business prohibited after the Face Foundrie franchise is terminated or expires?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. | |
| (q) Non-competition covenants during the term of the franchise | Section 8.2 | No direct or indirect involvement in competitive business. | |
| (r) Non-competition covenants after the franchise is terminated or expires | Section 8.3 | For two years, no involvement in competitive business located within a 10-mile radius of any Facial Bar. | |
| Provision | Section(s) in Area Development Agreement | Summary | |
| (s) Modification of the agreement | Section 15 | Except for those permitted to be made unilaterally by us hereunder, no amendment, change, or variance from the Area Development Agreement will be binding on either party unless mutually agreed to by the parties and executed by their authorized officers or agents in writing. | |
| (t) Integration/merger clause | Section 15 | Only the terms of the Area Development Agreement and other related written agreements are binding (subject to applicable state law). Any representations or promises outside of the Disclosure Document and Area Development Agreement may not be enforceable. No claim made in any franchise agreement is intended to disclaim the representations made in this Franchise Disclosure Document. | |
| (u) Dispute resolution by | Sections 16.3 and 16.4 | Except for certain claims, all disputes must be | |
| arbitration or | mediated, and if not settled by mediation, are then | ||
| mediation | subject to arbitration. | ||
| (v) Choice of forum | Section 16.5 | Litigation must be held in the federal or state court for the district where our principal executive office is located (subject to state law). |
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, franchisees are subject to a non-competition covenant for a period of two years after the franchise is terminated or expires. This restriction prevents them from being directly or indirectly involved in any competitive business within a 10-mile radius of any Face Foundrie Facial Bar.
The definition of a "competitive business" includes any establishment that operates or franchises a business where more than 10% of its offerings consist of facial services or beauty treatments for the face, or any business that offers waxing services. This means that a former Face Foundrie franchisee cannot open a similar facial bar or waxing salon within the specified radius for two years after leaving the franchise system.
This non-compete clause is a fairly standard practice in franchising to protect the brand's market share and customer base. Prospective Face Foundrie franchisees should carefully consider the implications of this restriction, especially if they plan to remain in the same geographic area after their franchise agreement ends. The enforceability of non-compete agreements can vary by state, so franchisees should consult with legal counsel to understand their rights and obligations.