What is the requirement regarding existing Franchise Agreements when transferring the Face Foundrie Area Development Agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in | Summary | |
|---|---|---|---|
| Area Development Agreement | rights or obligations under the Area Development Agreement, or any material asset of your business, without our prior written consent, which shall be subject to all of the conditions and requirements for transfers set forth in the Franchise Agreement executed simultaneously with the Area Development Agreement that we deem applicable to a proposed transfer under the Area Development Agreement. | ||
| (l) Franchisor approval | Section 7.2 | We have the right to approve transfers. | |
| of transfer by area | |||
| developer | |||
| (m) Conditions for franchisor’s approval of transfer | Sections 7.2 and 7.3 | Unless waived, a transfer of the Area Development Agreement is conditioned on, among other factors, the requirement that the proposed transfer of the Area Development Agreement be made in conjunction with a simultaneous transfer of all existing Franchise Agreements to the same approved transferee. Additionally, your first Facial Bar under your first Franchise Agreement must be open and operating. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, if an area developer seeks to transfer their Area Development Agreement, they must simultaneously transfer all existing Franchise Agreements to the same approved transferee. Additionally, the first Face Foundrie Facial Bar under the initial Franchise Agreement must be open and operating at the time of the transfer.
This condition ensures that the new area developer takes on the full scope of the existing franchise network within the designated area, maintaining continuity and consistency in brand operations. It prevents the fragmentation of the franchise system and ensures that the transferee is committed to managing both the development of new locations and the operation of existing ones.
For a prospective Face Foundrie area developer, this means that any plans to transfer the Area Development Agreement must include a strategy for transferring all existing franchise locations to the same buyer. This could complicate the transfer process, as finding a suitable transferee willing and able to take on all existing obligations may require more effort. The requirement for the first Facial Bar to be open and operating suggests that the Area Development Agreement cannot be transferred before the developer has demonstrated their ability to successfully launch and manage a Face Foundrie location.
It is important for potential area developers to carefully consider these transfer conditions and ensure they have a clear plan for managing existing franchises if they intend to transfer their Area Development Agreement in the future.