What qualifications must a transferee meet to be approved by Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
roval of a Transfer that meets all of the reasonable restrictions, requirements and conditions Franchisor may impose on the Transfer, the transferor(s) and/or the transferee(s), including the following:
(a) Franchisee and its Owners and Affiliates must be in compliance with the provisions of this Agreement and all other agreements with Franchisor or any of its Affiliates and have paid all outstanding amounts owed thereto, as well as to the approved suppliers to the System;
(b) The transferee shall demonstrate to Franchisor's satisfaction that the terms of the proposed transfer do not place an unreasonable financial or operational burden on the transferee, and that the transferee (or, if the transferee is other than an individual, such owners of beneficial interests in the transferee as Franchisor may request) meets Franchisor's then-current application qualifications (which may include educational, managerial, socially responsible, and business standards, good moral character, business reputation, and credit rating); has the aptitude and ability to operate the Facial Bar and absence of conflicting interests; and has adequate financial resources and capital to operate the Facial Bar;
(c) The proposed transferee must enter into an agreement in writing to assume and perform all of Franchisee's duties and obligations hereunder and/or, as required by Franchisor, execute the form of franchise agreement then being offered to new System franchisees, and such other ancillary agreements required by Franchisor for the Facial Bar franchised hereunder, which agreements shall supersede this Agreement and its ancillary documents in all respects, and the terms of which may differ from the terms of this Agreement including, without limitation, higher and/or additional fees;
(d) The transferee (and, if the transferee is not an individual, the Operating Partner), shall, at the transferee's expense, successfully attend and successfully complete any training programs then in effect for operators upon such terms and conditions as Franchisor may reasonably require;
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a transferee must meet several qualifications to be approved. The transferee needs to demonstrate that the proposed transfer won't create unreasonable financial or operational burdens. The transferee (or beneficial owners, if not an individual) must meet Face Foundrie's current application qualifications, which can include standards for education, management, social responsibility, business, moral character, business reputation, and credit rating.
Furthermore, the transferee must show they have the aptitude and ability to operate the Facial Bar, without any conflicting interests. They also need to prove they have enough financial resources and capital to run the business effectively. The transferee is required to enter into a written agreement to take on all of the franchisee's duties and obligations. Face Foundrie may also require the transferee to execute the current franchise agreement offered to new franchisees, which could have different terms, including higher or additional fees.
The transferee (or the Operating Partner, if the transferee isn't an individual) must attend and complete any training programs that Face Foundrie has in place for operators. The transferee may also need to upgrade the Facial Bar to meet the current standards for new Face Foundrie locations if the franchisor requests it. These requirements ensure that the new owner is well-prepared and capable of maintaining Face Foundrie's standards and operational consistency.
These stipulations are fairly standard in the franchise industry, as franchisors want to ensure that any new owners are capable of running the business successfully and maintaining the brand's reputation. Prospective franchisees should carefully consider these requirements and ensure they can meet them before attempting to transfer a franchise.