Does Face Foundrie have the option to acquire the lease for the premises upon termination?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) at the option of Franchisor, assign to Franchisor any interest which Franchisee has in any lease or sublease for the Premises if Franchisee leases a location for the Facial Bar.
In the event Franchisor does not elect to exercise its option to acquire the lease or sublease for the Premises, Franchisee must, at Franchisee's expense, make such reasonable modifications to the exterior and interior décor of the Facial Bar and the Premises, and with respect to any vehicles, as Franchisor requires to eliminate its identification as a Face Foundrié Facial Bar.
If Franchisee fails to modify the exterior and interior décor of the Facial Bar, the Premises, and vehicles, as Franchisor requires to eliminate its identification as a Face Foundrié Facial Bar, Franchisor may take such action to modify the exterior and interior décor of the Facial Bar and the Premises and charge Franchisee for the cost of such action.
Franchisee shall immediately pay Franchisor for the cost of any action taken by Franchisor to modify the exterior and interior décor of the Facial Bar and the Premises;
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie has the option to acquire the lease or sublease for the premises if a franchisee leases a location for their Facial Bar. If Face Foundrie chooses not to exercise this option, the franchisee is responsible for modifying the premises to remove any identification as a Face Foundrie Facial Bar. These modifications must be reasonable and eliminate any association with the Face Foundrie brand.
If the franchisee fails to make these required modifications, Face Foundrie has the right to take action to modify the premises themselves and charge the franchisee for the costs incurred. The franchisee is then obligated to immediately pay Face Foundrie for these modification expenses. This ensures that upon termination or expiration of the franchise agreement, the premises no longer represent or appear to be associated with the Face Foundrie brand, protecting Face Foundrie's brand identity and market position.
This clause is important for prospective franchisees to understand, as it outlines the financial responsibility they bear upon exiting the Face Foundrie system, especially if Face Foundrie declines to take over the lease. Franchisees should factor in potential modification costs when considering the overall investment and potential exit strategy. It is also important to note that Face Foundrie must approve the location for the Facial Bar.