Does the post-term non-competition agreement for Face Foundrie apply if the franchisee transfers the franchise?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
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 construct
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the post-term non-competition agreement applies if the franchisee transfers the franchise. Specifically, the franchisee and other restricted parties (including the franchisee's spouse and owners) agree to certain restrictions for two years after the date of a transfer by the franchisee.
These restrictions prevent the franchisee and restricted parties from having a direct or indirect interest as an owner in a Competitive Business or performing services for a Competitive Business without Face Foundrie's prior written consent. A Competitive Business is defined as any business where more than 10% of its offerings consist of facial services or beauty treatments for the face, or that offers waxing services.
The non-compete restrictions apply within a ten-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. This means that if a franchisee transfers their franchise, they cannot immediately open a competing business within that specified area.
This post-term non-competition agreement is standard practice in franchising to protect the brand and prevent franchisees from using the franchisor's confidential information and business model to compete against the franchise system after they leave. Prospective Face Foundrie franchisees should carefully consider the implications of this restriction, especially if they plan to sell their franchise and remain in the same geographic area.