Does Face Foundrie require approval for the transfer of a Facial Bar franchise?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
The transferor shall remain liable for all of the obligations to Franchisor in connection with the Facial Bar that arose prior to the effective date of the transfer and shall execute any and all instruments reasonably requested by Franchisor to evidence such liability.
- 13.03 Special Transfers. Neither Section 13.05 nor Section 13.02(e) shall apply to any Transfer to an Entity formed solely for the convenience of ownership, or among any of Franchisee's then-current Owners.
13.04 Death or Disability of Franchisee. Upon Franchisee's death or permanent disability, or the death or permanent disability of the Operating Partner or an Owner of a controlling interest in Franchisee, the executor, administrator or other personal representative of such person shall transfer his or her interest in this Agreement or his or her interest in Franchisee to a third party approved b
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the transfer of a franchise is subject to approval by Face Foundrie. Specifically, in the event of the death or permanent disability of the franchisee, operating partner, or an owner with a controlling interest, the executor or personal representative must transfer the interest to a third party approved by Face Foundrie. This transfer must occur within six months, adhering to the conditions outlined in Section 13 of the franchise agreement.
This requirement ensures that any new owner or operator meets Face Foundrie's standards and is capable of maintaining the brand's quality and reputation. The approval process allows Face Foundrie to vet potential transferees, ensuring they have the necessary qualifications, financial stability, and commitment to uphold the brand's operational standards. This is a common practice in franchising, as franchisors typically want to maintain control over who operates their branded locations.
However, there are exceptions to this approval requirement. Transfers to an entity formed solely for ownership convenience or among the franchisee's current owners do not require franchisor approval, as specified in Section 13.03. This provides some flexibility for internal restructuring or ownership adjustments without needing to go through the formal approval process with Face Foundrie.
For a prospective franchisee, this means that if they ever decide to sell their franchise or if ownership changes are necessary due to unforeseen circumstances like death or disability, Face Foundrie's approval will be required, unless the transfer falls under the special transfer exceptions. It is important to understand the conditions and procedures for transfer to ensure compliance with the franchise agreement and to facilitate a smooth transition.