Can Face Foundrie operate businesses acquired from other franchise systems within a franchisee's Protected Territory?

According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie has the right to operate businesses acquired from other franchise systems within a franchisee's protected territory. Specifically, Face Foundrie or its affiliates can purchase businesses that are part of another franchise system or chain and either continue to operate them independently or convert them to Face Foundrie Facial Bars. This right applies within the franchisee's protected territory.

This clause in the franchise agreement means that even if a franchisee is granted a protected territory, Face Foundrie retains the ability to operate businesses acquired from other franchise systems within that territory. This could potentially increase competition within the franchisee's protected area if Face Foundrie decides to purchase and operate or convert existing businesses.

For a prospective franchisee, this is an important consideration. While a protected territory is granted, it is not absolute. Face Foundrie maintains the flexibility to expand its presence through acquisitions, which could impact the franchisee's market share and revenue potential. It is essential for potential franchisees to understand this aspect of the agreement and assess the potential impact on their investment.

It is also important to note that Face Foundrie retains other rights within the protected territory, such as the right to offer and sell products or services through various distribution channels like the internet, direct marketing, or mass merchandise outlets, as long as these sales are not made from a Face Foundrie Facial Bar located within the protected territory. This further emphasizes that the protected territory primarily restricts the establishment of new Face Foundrie Facial Bar locations by other franchisees but does not eliminate all forms of competition from Face Foundrie itself.