Who are the 'Owners' referenced in the Face Foundrie agreement, and what are their obligations upon termination?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the obligations set forth above, upon termination of this Agreement for any reason, Franchisee shall immediately deliver to Franchisor all copies of lists of customers and copies of all other information concerning customers, including, but not limited to, all computer generated data regarding such customers, and neither Franchisee nor its directors, officers, Owners, managers, employees, successors and assigns shall use any said information concerning such customers to solicit any of such customers.
All of the
information Franchisor or its Affiliates obtain from Franchisee or the Facial Bar, and all information in Franchisee's or Franchisor's records about the customers of the Facial Bar (the "Information") and all revenues Franchisor derives from the Information will be Franchisor's property. However, Franchisee may at any time during the term of this Agreement use it in the operation of the Facial Bar (but for no other purpose), to the extent lawful and at Franchisee's sole risk and responsibility, any information that Franchisee acquires from third parties in operating the Facial Bar, including customer data. The Information (except for information Franchisee provides to Franchisors or its affiliates about Franchisee and its Affiliates, including Franchisee's respective officers, directors, shareholders, partners, or Owners) will become Franchisor's property, which Franchisor may use for any reason Franchisor deems necessary or appropriate in its discretion. Franchisee hereby authorizes any software providers or other vendors to release this information to Franchisor at any time. After termination or expiration of this Agreement, Franchisee will no longer use any of the Information, except to comply with Franchisee's post-term obligations under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the term 'Owners' refers to individuals or entities that hold an interest in the Face Foundrie franchise. Upon termination of the Franchise Agreement, these Owners, along with the franchisee, have specific obligations to adhere to.
Specifically, upon termination of the agreement for any reason, the franchisee must immediately hand over all customer lists and related information, including computer-generated data, to Face Foundrie. Neither the franchisee nor its directors, officers, Owners, managers, employees, successors, or assigns are allowed to use this customer information to solicit customers. This restriction ensures that the franchisor retains control over customer relationships and prevents unfair competition after the franchise agreement ends.
Furthermore, all information obtained from the franchisee or the Facial Bar, including customer data, becomes the property of Face Foundrie. The franchisor can use this information as deemed necessary, except for the franchisee's internal data. After the termination or expiration of the agreement, the franchisee is prohibited from using any of this information, except to fulfill post-termination obligations as outlined in the agreement. This clause emphasizes the franchisor's ownership of customer-related data and restricts the franchisee's use of such data after the agreement concludes.