What is Face Foundrie's obligation regarding operating or franchising other Face Foundrie Facial Bars within the Protected Territory?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.02 Protected Territory. During the Term, Franchisor will not operate (directly or through an Affiliate), nor grant to another Person the right to operate, any Face Foundrié Facial Bar located within the geographical area set forth on Exhibit A hereto (the "Protected Territory").
Notwithstanding the foregoing, Franchisor has the right to operate (directly or through an Affiliate), and to grant to others the right to operate, within the Protected Territory and elsewhere: (a) Face Foundrié Facial Bars or other businesses using any part or all of the System and/or Marks that are operating as of the Effective Date; and (b) businesses that Franchisor or its Affiliates purchase (or as to which Franchisor or its Affiliates purchases the rights as franchisor) that are part of another franchise system or chain and either continue to operate them independently or convert them to Face Foundrié Facial Bars.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, Face Foundrie provides a protected territory to its franchisees. During the franchise term, Face Foundrie will not operate or grant to another person the right to operate a Face Foundrie Facial Bar within the franchisee's protected territory, as defined in Exhibit A. This agreement is in place for the duration of the 10-year term.
However, Face Foundrie retains the right to operate or franchise others within the protected territory under certain conditions. This includes Face Foundrie Facial Bars or other businesses using the Face Foundrie system or marks that were already operating as of the effective date of the franchise agreement. It also includes businesses that Face Foundrie or its affiliates purchase (or acquire the rights to as franchisor) that are part of another franchise system or chain, which they can either continue to operate independently or convert into Face Foundrie Facial Bars.
Face Foundrie also retains the right to establish and operate, or grant to other franchisees or licensees the right to establish and operate, a Face Foundrié Facial Bar or any other business using the Marks, the System or any variation of the Marks and the System, (i) in any location outside the Protected Territory or (ii) as contemplated by Section 2.02 above; in each case on any terms and conditions that Face Foundrie deems appropriate.