Who owns the modifications or improvements that a Face Foundrie franchisee makes to the System?

According to Face Foundrie's 2025 Franchise Disclosure Document, any modifications or improvements that a franchisee makes to the Face Foundrie System, including ideas, concepts, methods, or techniques, are considered works made for hire and are owned exclusively by Face Foundrie. This means that even if a franchisee develops a new and innovative approach to the Face Foundrie system, the rights to that innovation belong to the franchisor.

This has significant implications for prospective franchisees. Face Foundrie is not obligated to compensate franchisees for any modifications or improvements they develop. Furthermore, Face Foundrie can require franchisees to sign documents that evidence the franchisor's ownership of these modifications or to assist in securing intellectual property rights. This clause ensures that Face Foundrie maintains control over the System's intellectual property and can implement changes and improvements across the franchise network without compensating individual franchisees for their contributions.

This type of clause is relatively common in franchising. Franchisors often want to maintain uniformity and control over their brand and operating systems. By owning any improvements or modifications, Face Foundrie can ensure that these changes are implemented consistently across all locations and that the brand remains standardized.

A prospective franchisee should carefully consider this provision and understand that any innovations they develop for their Face Foundrie location will become the property of the franchisor. It would be prudent to discuss this with existing franchisees to understand how this policy has played out in practice and whether there are opportunities for franchisees to be recognized or rewarded for their contributions in other ways.