What representations do Face Foundrie franchisees and their owners make to the franchisor?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
ay change over time, that an investment in a Face Foundrié Facial Bar involves business risks, and that the success of the venture is largely dependent on Franchisee's own abilities, efforts and financial resources. Franchisee or its Owners shall truthfully fill out the Franchisee Acknowledgment attached hereto as Exhibit H.
- 1.03 Representations. Franchisee and its Owners, jointly and severally, represent and warrant to Franchisor that: (a) neither Franchisee nor any of its Owners have made any untrue statement of any material fact or has omitted to state any material fact in the written information submitted in obtaining the rights granted hereunder; (b) neither Franchisee nor any of its Owners have any direct or indirect legal or beneficial interest in any beauty-related business that may be deemed a Competitive Business, except as Franchisee has otherwise completely and accurately disclosed in writing to Franchisor in connection with obtaining the rights granted hereunder; and (c) the execution and performance of this Agreement will not violate any other agreement to which Franchisee or any of its Owners may be bound. Franchisee recognizes that Franchisor has executed this Agreement in reliance on all of the statements Franchisee and its Owners have made in writing in connection with this Agreement.
- 1.04 Certain Definitions. The terms listed below have the meanings which follow them and include the plural as well as the singular. Other terms are defined elsewhere in this Agreement in the context in which they arise.
- (a) "Affiliate" Any Person that directly or indirectly owns or controls the referenced party, that is directly or indirectly owned or controlled by the referenced party, or that is under common control with the referenced party. The term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an Entity, whether through ownership of voting securities, by contract or otherwise.
- (b) "Competitive Business" Any business operating or franchising an establishment (i) at which more than 10% of the offerings consists of facial services or beauty treatments for the face, or (ii) that offers waxing services.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie FDD, franchisees and their owners make several representations to the franchisor. They represent that the written information they submitted to obtain franchise rights is true and does not contain any misstatements or omissions of material facts. They also affirm that they do not have any undisclosed direct or indirect interests in any beauty-related business considered a Competitive Business, unless they have fully disclosed it in writing to Face Foundrie. Finally, they represent that entering into the Franchise Agreement does not violate any other agreements they or their owners may be bound by. Face Foundrie acknowledges that it is relying on these statements when entering into the agreement.
If a Face Foundrie franchisee or their affiliates or owners operate an existing facial bar that they are converting into a Face Foundrie Facial Bar, they make additional representations. These include assurances that there is no pending or threatened litigation against the existing facial bar, that the bar has been operated in compliance with all applicable laws, and that all financial information provided to Face Foundrie regarding prior revenues, profits, expenses, and customer numbers is accurate. They also represent that they do not own a Competitive Business that would violate the non-competition terms of the Franchise Agreement.
These representations are crucial because they form the basis upon which Face Foundrie grants the franchise. Any misrepresentation or omission could potentially lead to legal issues or termination of the franchise agreement. Prospective franchisees should carefully review all information provided to Face Foundrie for accuracy and completeness to avoid any future disputes. Franchisees should also be aware of the definition of "Competitive Business" as defined in the FDD to ensure compliance with non-competition terms.