Who is prohibited from using customer information after the termination of a Face Foundrie franchise agreement?

According to Face Foundrie's 2025 Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee, along with their directors, officers, owners, managers, employees, successors, and assigns, are prohibited from using customer information to solicit customers. This includes all copies of customer lists and any other information concerning customers, including computer-generated data. This restriction ensures that the franchisee cannot leverage the customer base developed during the franchise term for their own benefit after the agreement ends.

This provision is designed to protect Face Foundrie's customer relationships and prevent unfair competition from former franchisees. The franchisor retains ownership of all information obtained from the franchisee or the Facial Bar, as well as all information in the records about the customers of the Facial Bar and all revenues derived from this information. The franchisee is only allowed to use this information during the term of the agreement for operating the Facial Bar, and even then, it is at the franchisee's sole risk and responsibility.

For a prospective Face Foundrie franchisee, this means that building a customer base is essentially building an asset for the franchisor. Upon termination, the franchisee loses the ability to directly market to or leverage the relationships established during the franchise term. This highlights the importance of understanding the terms of the franchise agreement and the limitations placed on the use of customer data, especially when considering the long-term value and potential resale opportunities of the business. Franchisees should also be aware of their obligations to protect customer information during the term of the agreement and to return all copies of customer lists and related data upon termination.