Does Face Foundrie have to provide a cure period if a franchisee files for bankruptcy?

According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie does not have to provide a cure period to a franchisee who files for bankruptcy. Face Foundrie can terminate the franchise agreement immediately upon written notice if the franchisee files a petition under any bankruptcy or reorganization law, becomes insolvent, or has a trustee or receiver appointed by a court for their property.

This means that if a Face Foundrie franchisee experiences severe financial distress and seeks bankruptcy protection, Face Foundrie has the right to terminate the franchise agreement without allowing the franchisee an opportunity to resolve the financial issues. This is a significant risk for franchisees, as it means they could lose their business entirely if they encounter financial difficulties leading to bankruptcy.

This policy is not uncommon in franchising, as franchisors often want to protect their brand and system standards from the potential negative impacts of a franchisee's bankruptcy. However, it underscores the importance of careful financial planning and risk management for prospective Face Foundrie franchisees. Franchisees should ensure they have sufficient capital and a solid business plan to minimize the risk of financial distress and potential termination of their franchise agreement.