What relationship are the Face Foundrie franchisor and franchisee considered to have?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
17. RELATIONSHIP OF THE PARTIES.
17.01 Independent Contractors.
- (a) Neither this Agreement nor the dealings of the parties pursuant to this Agreement shall create any fiduciary relationship or any other relationship of trust or confidence between the parties hereto.
Franchisor and Franchisee, as between themselves, are and shall be independent contractors.
Nothing contained in this Agreement, or arising from the conduct of the parties hereunder, is intended to make either party a general or special agent, joint venturer, joint employer, partner or employee of the other for any purpose whatsoever.
Franchisee must conspicuously identify itself in all dealings with customers, lessors, contractors, suppliers, public officials, employees and others as the owner of the Facial Bar and must place such other notices of independent ownership on such forms, business cards, stationery, advertising and other materials as Franchisor may require from time to time.
Franchisee may not make any express or implied agreements, warranties, guarantees or representations or incur any debt in Franchisor's name or on Franchisor's behalf or represent that the relationship of the parties hereto is anything other than that of independent contractors.
Franchisor will not be obligated by or have any liability under any agreements made by Franchisee with any third party or for any representations made by Franchisee to any third party.
Franchisor will not be obligated for any damages to any person or property arising directly or indirectly out of the operation of Franchisee's Facial Bar hereunder.
Franchisee will not include the Marks on any employment- or personnel-related documents, including without limitation employment applications, employment agreements, or methods of payment to its employees.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, Face Foundrie and its franchisees are considered independent contractors. The agreement explicitly states that the relationship does not create any fiduciary duty or relationship of trust between the parties. This means that neither party owes the other the heightened legal duties that exist in relationships like partnerships or agencies.
As independent contractors, Face Foundrie franchisees are responsible for managing their own business operations, including dealings with customers, lessors, contractors, suppliers, public officials, and employees. Franchisees must clearly identify themselves as the owners of their Facial Bar in all their interactions. They cannot make agreements, warranties, or incur debts on behalf of Face Foundrie, nor can they represent their relationship as anything other than that of independent contractors.
Face Foundrie will not be liable for any agreements made by the franchisee with third parties or for any damages arising from the franchisee's operations. This reinforces the independent nature of the relationship, where the franchisee bears the responsibility for their business's actions and obligations. This is a common arrangement in franchising, where franchisees operate their businesses independently while adhering to the franchisor's system and standards.
This independent contractor relationship has several implications for prospective Face Foundrie franchisees. It means they have significant autonomy in running their business but also bear the full responsibility for its success or failure. They need to be prepared to handle all aspects of business management, from hiring and training employees to managing finances and marketing. While Face Foundrie provides a system and support, the franchisee is ultimately in charge of their own business's operations and outcomes.