What is required of Restricted Parties as a condition to the effectiveness of the Face Foundrie Franchise Agreement?

According to the 2025 Face Foundrie Franchise Disclosure Document, as a condition for the Franchise Agreement to become effective, each Restricted Party must sign and deliver the Personal Covenants to Face Foundrie. This document, attached as Exhibit E to the Franchise Agreement, requires the Restricted Parties to agree to be personally bound by the provisions outlined in Sections 7.01, 7.02, 7.03, 7.06, and 13.05 of the agreement. These sections likely pertain to key obligations and restrictions necessary to protect Face Foundrie's interests.

If there are any changes to the identity of the Restricted Parties during the term of the Franchise Agreement, the franchisee is obligated to promptly inform Face Foundrie. Furthermore, the franchisee must ensure that any new Restricted Party also signs and delivers the Personal Covenants to Face Foundrie. This ensures that all individuals in a position to impact the franchise's operations are bound by the same obligations and restrictions.

This requirement is a fairly standard practice in franchising, as it ensures that key individuals associated with the franchisee are personally committed to upholding the terms of the agreement, especially those concerning confidentiality, non-competition, and protection of the Face Foundrie system. By having Restricted Parties sign these personal covenants, Face Foundrie aims to safeguard its brand, trade secrets, and overall business model.