Must a proposed transferee of a Face Foundrie franchise enter into an agreement to assume the franchisee's duties?

According to Face Foundrie's 2025 Franchise Disclosure Document, a proposed transferee must enter into a written agreement to assume and perform all of the franchisee's duties and obligations. Alternatively, if required by Face Foundrie, the transferee must execute the form of franchise agreement then being offered to new franchisees. This new agreement supersedes the original agreement and its ancillary documents in all respects. The terms of the new agreement may differ from the original, potentially including higher and/or additional fees.

Before the transfer can occur, the transferee must demonstrate to Face Foundrie's satisfaction that the proposed transfer does not place an unreasonable financial or operational burden on them. The transferee (or certain owners, if the transferee is not an individual) must meet Face Foundrie's then-current application qualifications. These qualifications may include educational, managerial, socially responsible, and business standards, good moral character, business reputation, and credit rating. The transferee must also demonstrate the aptitude and ability to operate the Facial Bar, show an absence of conflicting interests, and possess adequate financial resources and capital to operate the Facial Bar.

The transferee (and the Operating Partner, if the transferee is not an individual) must also successfully attend and complete any training programs in effect for operators, at the transferee's expense, under terms and conditions that Face Foundrie may reasonably require. The franchisee or the proposed transferee must pay Face Foundrie a transfer fee equal to the greater of $10,000 or reimbursement for all legal, accounting, training, and other expenses incurred by Face Foundrie in connection with the transfer.

Furthermore, the franchisee and its owners and affiliates must execute a general release of any and all claims against Face Foundrie and its affiliates, stockholders, officers, directors, employees, agents, successors, and assigns, in a form and substance satisfactory to Face Foundrie, except to the extent limited or prohibited by applicable law. The transferee of an owner must also enter into a written agreement to be bound as an owner under the terms of the agreement as long as they own any interest in the franchisee, and they may be required to guarantee the performance of the transferee's obligations in writing.