factual

Is Face Foundrie required to obtain the franchisee's consent before operating a competing business outside the Protected Territory?

Q: Is Face Foundrie required to obtain the franchisee's consent before operating a competing business outside the Protected Territory?

- **2.03 Reservation of Rights.** Notwithstanding anything to the contrary set forth herein, Franchisor retains the right, in its sole discretion, to: - (a) establish and operate, and grant to other franchisees or licensees the right to establish and operate, a Face Foundrié Facial Bar or any other business using the Marks, the System or any variation of the Marks and the System, (i) in any location outside the Protected Territory or (ii) as contemplated by Section 2.02 above; in each case on any terms and conditions that Franchisor deems appropriate; Source: Item 22 — CONTRACTS (FDD pages 73–74)

Face_Foundrie Franchise · 2025 FDD

Answer from 2025 FDD Document

2.03 Reservation of Rights. Notwithstanding anything to the contrary set forth herein, Franchisor retains the right, in its sole discretion, to:
(a) establish and operate, and grant to other franchisees or licensees the right to establish and operate, a Face Foundrié Facial Bar or any other business using the Marks, the System or any variation of the Marks and the System, (i) in any location outside the Protected Territory or (ii) as contemplated by Section 2.02 above; in each case on any terms and conditions that Franchisor deems appropriate;

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2025 FDD)

According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie retains specific rights regarding the operation of competing businesses. Specifically, Face Foundrie is not required to obtain the franchisee's consent to establish or operate a Face Foundrié Facial Bar, or any other business using the Face Foundrie marks or system, in any location outside the franchisee's protected territory. This also applies to granting other franchisees or licensees the right to do the same.

This means that a Face Foundrie franchisee's protected territory offers no safeguard against competition from other Face Foundrie outlets or businesses using the Face Foundrie system that are located outside of that territory. Face Foundrie maintains the sole discretion to establish these businesses on any terms and conditions it deems appropriate.

This clause underscores the importance of thoroughly evaluating the defined protected territory and market conditions during due diligence. A prospective franchisee should carefully consider the potential impact of other Face Foundrie locations or related businesses operating nearby but outside their protected territory, as Face Foundrie is not obligated to seek their consent or approval for such ventures.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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