Who is responsible for all obligations under the Lease for a Face Foundrie franchise?

According to Face Foundrie's 2025 Franchise Disclosure Document, the tenant, who is the franchisee, is solely responsible for all obligations under the lease for the premises, unless Face Foundrie Franchising L.L.C. (the Franchisor) or another franchisee expressly assumes those obligations and takes possession of the premises. This is outlined in the Lease Rider, which is incorporated into the lease agreement.

This means that as a Face Foundrie franchisee, you are the primary party responsible for fulfilling all the terms and conditions of your location's lease agreement, including rent payments, maintenance, and adherence to any other stipulations outlined in the lease. Face Foundrie is not automatically responsible for your lease obligations unless they explicitly agree to take over the lease, typically in situations where they might take over the operation of the franchise.

This arrangement protects Face Foundrie from being directly liable for the lease obligations of its franchisees. However, the franchisor does retain certain rights as a third-party beneficiary to enforce the lease if they hold a collateral assignment of it. Additionally, the landlord consents to the collateral assignment of the lease to Face Foundrie, which secures the franchisee's obligations to the franchisor under the Franchise Agreement. This also allows Face Foundrie to take over the lease if the franchisee defaults or the Franchise Agreement is terminated, or to assign the lease to another franchisee.

As a prospective franchisee, it is crucial to carefully review the lease agreement and the Lease Rider to fully understand your obligations and the conditions under which Face Foundrie might become involved. Understanding these details is essential for managing your financial and legal responsibilities as a Face Foundrie franchisee.