On what page of the Face Foundrie franchise agreement are the restrictive covenants detailed?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
7. RESTRICTIVE COVENANTS.
7.01 Covenants Not to Compete.
- (a) Non-Competition during Term. In addition to and not in limitation of any other restrictions on Franchisee contained herein, Franchisee and Franchisee's spouse, and, if Franchisee is not an individual, each of its Owners and their spouses (each, a "Restricted Party"), agree that they will not, directly or indirectly, for and on behalf of itself, himself, herself or any other Person, without the prior written consent of Franchisor, during the Term (i) have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business, regardless of location or (ii) perform services as a director, officer, manager, employee, consultant, representative, agent, or otherwise for a Competitive Business, regardless of location.
- (b) Post-Term Non-Competition. In addition to and not in limitation of any other restrictions on Franchisee contained herein, Franchisee and the Restricted Parties agree that they will not, for two (2) years following the effective date of termination or expiration of this Agreement for any reason, or following the date of a Transfer by Franchisee, or, with respect to a Restricted Party only, by such Restricted Party, directly or indirectly, for and on behalf of itself, himself, herself or any other Person, without the prior written consent of Franchisor, (i) have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business or (ii) perform services as a director, officer, manager, employee, consultant, representative, agent, or otherwise for a Competitive Business which, in either case, is located or operating within a ten (10) mile radius of the protected territory of any Face Foundrié Facial Bar in operation or under construction on the effective date of termination or expiration.
- (c) General. The parties acknowledge that the covenants contained in this Section 7.01 are given in consideration of the fact that Franchisee and the Restricted Parties will possess knowledge of
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the restrictive covenants are detailed in Section 7 of the franchise agreement. Specifically, Section 7.01 outlines covenants not to compete during the term of the agreement and post-term, including restrictions on ownership or involvement in a Competitive Business. Section 7.02 discusses confidential information, and Section 7.04 requires Restricted Parties to sign and deliver Personal Covenants agreeing to be bound by Sections 7.01, 7.02, 7.03, 7.06 and 13.05. Section 7.06 states that Franchisee and each Restricted Party acknowledge and agree that the covenants and restrictions in Section 7 are reasonable, appropriate and necessary to protect the System, other Face Foundrié Facial Bars and the legitimate interest of Franchisor and its Affiliates, and (b) do not cause undue hardship on Franchisee or any of the other individuals required by this Section 7 to comply with the covenants and restrictions.
These restrictive covenants are designed to protect Face Foundrie's business interests, trade secrets, and competitive advantage. They prevent franchisees and related parties from engaging in activities that could harm the franchise system, either during the term of the agreement or for a specified period after termination. The FDD emphasizes the importance of these covenants for maintaining uniformity and protecting the goodwill of the Face Foundrie brand.
For a prospective franchisee, understanding these restrictions is crucial. They dictate what activities a franchisee and related parties can and cannot engage in, both during and after the franchise agreement. The restrictions include non-competition clauses, confidentiality agreements, and non-solicitation agreements. Franchisees must ensure they fully understand the scope and implications of these covenants before signing the agreement.
It is also important to note that the FDD mentions that these covenants are considered reasonable and necessary. However, if any part of the restriction is found to be unreasonable, a court may reduce the scope, time, or distance to what is deemed reasonable. Face Foundrie also has the right to seek injunctive relief to enforce these covenants, without needing to post a bond or security.