What are my options regarding customer contracts for events occurring after the termination of my Face Foundrie franchise?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Promptly, and in no event more than three (3) days after the termination or expiration of this Agreement, provide to Franchisor any and all information Franchisor requests regarding events, products or services to be provided by Franchisee or the Facial Bar after the date of expiration or termination, and at Franchisor's option, Franchisee will either (i) pay to Franchisor any amounts it has received from customers for events or products or services to be provided after the date of termination or expiration, and assign to Franchisor or its designee any contracts or related agreements to such events, products or services, or (ii) return such amounts to customers directly as well as any termination fees or penalties under such contracts.
Nothing herein will obligate Franchisor to take assignment of any obligations of Franchisee under any such contracts or relieve Franchisee of any liability for its obligations to customers or third parties after the termination or expiration of this Agreement;
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, if your franchise agreement is terminated or expires without you successfully acquiring a successor franchise, you have specific obligations regarding customer contracts for events, products, or services scheduled after the termination date. Within three days of termination or expiration, you must provide Face Foundrie with all requested information about these future events, products, or services.
Face Foundrie then has the option to choose one of two courses of action. First, Face Foundrie may require you to pay them any amounts you've already received from customers for these future obligations. In this case, you would also assign to Face Foundrie (or their designee) any related contracts or agreements. Alternatively, Face Foundrie may instruct you to return those amounts directly to the customers, along with any applicable termination fees or penalties specified in the contracts.
It's important to note that Face Foundrie's decision to take assignment of these contracts does not relieve you of any liabilities to customers or third parties after the termination or expiration date. You remain responsible for fulfilling those obligations or addressing any related issues. This clause ensures a smooth transition for customers while protecting Face Foundrie's interests and reputation, and clarifying the franchisee's responsibilities even after the franchise agreement ends.