Is Face Foundrie required to compensate franchisees for modifications or improvements they make to the System?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Any modifications or improvements that you make to the System, including ideas, concepts, methods or techniques, will be deemed works made for hire which shall be owned exclusively by us. We do not have to compensate you for your modifications or improvements. You must sign whatever documents we request to evidence our ownership or to assist us in securing intellectual property rights in such ideas, concepts, methods or techniques. All rights, title, and interest in advertising and promotional materials that you develop or prepare (or that are prepared by someone on your behalf) or that bear any Marks will belong to us. You must sign any documents we reasonably deem necessary to evidence our right, title, and interest in and to any advertising and promotional materials. We will have the right to use these materials and to provide them to other franchisees and marketing funds and programs of the System, without compensation to you, regardless of how the materials were developed.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 48–49)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie does not have to compensate franchisees for any modifications or improvements made to the Face Foundrie system. This includes any ideas, concepts, methods, or techniques developed by the franchisee. These modifications or improvements are considered works made for hire and are owned exclusively by Face Foundrie. Franchisees are required to sign documents to confirm Face Foundrie's ownership and assist in securing intellectual property rights for these developments.
This policy has significant implications for prospective Face Foundrie franchisees. While franchisees may innovate and improve their individual Facial Bar operations, they will not receive any direct financial benefit or recognition for these contributions. The ownership of these improvements immediately transfers to Face Foundrie, which can then implement them across the entire franchise system without compensating the originating franchisee. This is a fairly common practice in franchising, as franchisors aim to maintain uniformity and control over their brand and system standards.
Furthermore, all rights, title, and interest in advertising and promotional materials developed by the franchisee (or on their behalf) that bear any of Face Foundrie's marks belong to Face Foundrie. Face Foundrie has the right to use these materials and provide them to other franchisees and marketing funds and programs without compensating the originating franchisee. This underscores the importance for franchisees to understand that any creative work related to the Face Foundrie brand becomes the property of the franchisor, allowing Face Foundrie to leverage these materials across the franchise network without additional cost.
In summary, while franchisees are encouraged to contribute to the Face Foundrie system, they should be aware that they will not be compensated for their modifications or improvements. The franchisor retains full ownership and control over any such developments, which is a standard practice designed to protect the integrity and consistency of the Face Foundrie brand and operating system.