What operational requirement must be met before a Face Foundrie Area Development Agreement can be transferred?
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 |
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, a key condition must be met before an Area Development Agreement can be transferred. Specifically, the first Facial Bar under the franchisee's initial Franchise Agreement must be open and operating. This requirement ensures that a baseline level of operational success and brand presence is established before the development rights are transferred to another party.
This condition protects Face Foundrie by ensuring that area developers are actively engaged in establishing the brand before transferring their development rights. It also ensures that the transferee is taking over an agreement with demonstrated potential, rather than a completely unproven territory. For a prospective transferee, this means they will be stepping into a development agreement where at least one location is already operational, which may reduce some of the initial risks associated with starting a new franchise.
Furthermore, the transfer of the Area Development Agreement must occur alongside a simultaneous transfer of all existing Franchise Agreements to the same approved transferee. This stipulation ensures consistency in management and adherence to Face Foundrie's standards across all locations within the developed area. The franchisor retains the right to approve any transfer, and can impose additional conditions from the Franchise Agreement onto the Area Development Agreement transfer as they deem applicable.