Does Face Foundrie have an option to purchase the area developer's business?
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 same approved transferee. Additionally, your first Facial Bar under your first Franchise Agreement must be open and operating. | |
| (n) Franchisor’s right of | Not Applicable | ||
| first refusal to acquire | |||
| area developer’s | |||
| business | |||
| (o) Franchisor’s option to | Not Applicable | ||
| purchase area | |||
| developer’s business |
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, the table in Item 17 outlines various aspects of the franchise agreement, including transfer conditions and rights of first refusal. Specifically, it indicates whether Face Foundrie has an option to purchase the area developer's business.
The table includes a row labeled "Franchisor’s option to purchase area developer’s business" and the corresponding cell in the "Section(s) in Area Development Agreement" column states "Not Applicable". This means that the Area Development Agreement does not contain a provision granting Face Foundrie the option to purchase the area developer's business.
This absence of an option to purchase the area developer's business could be seen as a benefit for the area developer, as they would not be subject to a potential forced sale to Face Foundrie. However, it also means that Face Foundrie cannot directly acquire the area development rights, potentially complicating any future consolidation or strategic realignment efforts. A prospective franchisee should confirm with Face Foundrie whether this is still the case, and under what circumstances Face Foundrie might seek to acquire the area developer's business in the future.