Can Face Foundrie require a transferee to execute the then-current form of franchise agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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;
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a proposed transferee may be required to execute the form of franchise agreement then being offered to new Face Foundrie franchisees. This agreement would supersede the original agreement in all respects. The terms of the new agreement may differ from the original agreement, potentially including higher and/or additional fees.
This requirement ensures that the Face Foundrie franchise system remains consistent and up-to-date. By requiring transferees to adopt the current franchise agreement, Face Foundrie can implement new standards, fees, and operational procedures across all locations. This protects the brand's uniformity and ensures that all franchisees operate under the same set of rules and expectations.
For a prospective franchisee, this means that if they plan to sell their Face Foundrie franchise in the future, the buyer may face different terms and conditions than the original franchisee. The transferee will need to meet Face Foundrie's then-current application qualifications, attend training programs, and adhere to the new franchise agreement. This could affect the attractiveness of the franchise to potential buyers and the overall value of the business. The franchisee should consider these potential changes when making long-term business decisions.