What qualifications must the transferee meet to be approved by Face Foundrie for a franchise transfer?
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;
(e) Franchisee or the proposed transferee must pay Franchisor a transfer fee equal to the greater of (i) Ten Thousand Do
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 for a franchise transfer. The transferee must demonstrate that the terms of the proposed transfer do not create unreasonable financial or operational burdens. Additionally, the transferee (or its 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 possess the aptitude and ability to operate the Facial Bar without conflicting interests, and have adequate financial resources and capital.
Furthermore, the proposed transferee is required to enter into a written agreement to assume and perform all of the franchisee's duties and obligations. Face Foundrie may also require the transferee to execute the form of franchise agreement then being offered to new franchisees, along with any other necessary ancillary agreements. These agreements will supersede the original agreement and may include different terms, such as higher or additional fees. The transferee (or 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.
In addition to meeting the above requirements, Face Foundrie requires the franchisee or the proposed transferee to pay 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. The franchisee, its owners, and affiliates must also 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. These conditions ensure that the new franchisee is well-prepared and committed to upholding the standards and obligations of the Face Foundrie franchise system.