What is the meaning of 'Agreement' in the Face Foundrie Area Development Agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, for and in consideration of the covenants and agreements hereinafter set forth, the parties hereto covenant and agree as follows:
1. GRANT
1.1 Grant and Acceptance. Franchisor grants development rights to Area Developer, and Area Developer undertakes the obligation, pursuant to the terms and conditions of this Agreement, to develop no less than the number of Face Foundrié Facial Bars (the "Franchised Facial Bars") as set forth in Exhibit A to this Agreement. In this regard, the parties further agree that:
- 1.1.1 Each Franchised Facial Bar developed hereunder shall be operated pursuant to a separate Face Foundrié Franchise Agreement with Franchisor (a "Franchise Agreement") that shall be executed as provided in Section 3.4 below.
- 1.1.2 For each Franchised Facial Bar to be developed under this Agreement, Area Developer shall execute the Franchise Agreement for such Franchised Facial Bar in accordance with the deadlines set forth in the development schedule specified in Paragraph 1 of Exhibit A to this Agreement (the "Development Schedule").
1.1.3 Each Franchised Facial Bar developed hereunder shall be at a specific location, which shall be designated in the Franchise Agreement, that is within in the area described in Paragraph 2 of Exhibit A to this Agreement (the "Development Area").
If a "TBD" (to be determined) search area has been designated in Paragraph 2 of Exhibit A, Area Developer hereby authorizes Franchisor to designate the Development Area and complete Exhibit A subsequent to execution of this Agreement upon Franchisor approval of Area Developer's proposed territory.
Until Franchisor has so designated a Development Area, Area Developer will not have any rights to a protected territory.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, the term 'Agreement' within the context of the Area Development Agreement refers to the contractual arrangement between Face Foundrie Franchising L.L.C. and the Area Developer. This agreement grants the Area Developer the right and obligation to develop a specified number of Face Foundrie Facial Bars within a defined geographic area, as detailed in Exhibit A of the agreement. The Area Developer is bound by the terms and conditions outlined in the 'Agreement' to develop these franchised locations according to a set schedule. Each Face Foundrie Facial Bar developed under the Area Development Agreement will operate under a separate Face Foundrie Franchise Agreement.
The 'Agreement' also stipulates that each Face Foundrie Facial Bar must be located within the designated 'Development Area,' which is described in Exhibit A. If the Development Area is initially 'TBD' (to be determined), Face Foundrie retains the authority to designate the area upon approving the Area Developer's proposed territory. Until Face Foundrie designates the Development Area, the Area Developer does not have any rights to a protected territory. This aspect of the agreement is crucial for prospective Area Developers to understand, as it directly impacts their exclusive rights and ability to operate within a specific region.
Furthermore, the 'Agreement' includes various clauses that govern the relationship between Face Foundrie and the Area Developer, such as the Area Developer's certification of independent investigation, the determination of the Area Development Fee, and the duties of both parties. Face Foundrie is to provide site selection guidelines and assistance, while the Area Developer is responsible for designating an Operating Partner and submitting required records and reports. The 'Agreement' also outlines conditions for transferring interests, compliance with laws, and what happens upon termination or expiration of the agreement, including potential damages and the loss of rights to develop additional Face Foundrie Facial Bars. Therefore, the 'Agreement' is a comprehensive document that defines the rights, responsibilities, and obligations of both Face Foundrie and the Area Developer in establishing and operating Face Foundrie Facial Bars within a specified area.