What is the meaning of 'Franchisor' 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 Face Foundrie's 2025 Franchise Disclosure Document, the term 'Franchisor' in the context of the Area Development Agreement refers to Face Foundrié Franchising L.L.C. The Area Development Agreement outlines the rights and responsibilities of both Face Foundrie and the Area Developer.
Specifically, Face Foundrie grants development rights to the Area Developer to establish a certain number of Face Foundrié Facial Bars within a defined Development Area, as detailed in Exhibit A of the agreement. The Area Developer, in turn, is obligated to develop these facial bars according to the terms and conditions set forth in the agreement. Each facial bar must be operated under a separate Face Foundrié Franchise Agreement with Face Foundrie.
Face Foundrie also retains certain rights, including the right to operate or license others to operate Face Foundrié Facial Bars within the Development Area under specific circumstances, such as existing businesses as of the agreement's effective date or businesses acquired by Face Foundrie. Face Foundrie also provides assistance to the Area Developer, such as site selection guidelines and counseling. The Area Developer is required to comply with reporting requirements and maintain specific records for Face Foundrie's review.