For Face Foundrie, is a 'Restricted Party' only the franchisee and their spouse, or does it include other individuals?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Non-Competition during Term. In addition to and not in limitation of any other restrictions on Franchisee contained herein, Franchisee and Franchisee's spouse, and, if Franchisee is not an individual, each of its Owners and their spouses (each, a "Restricted Party"), agree that they will not, directly or indirectly, for and on behalf of itself, himself, herself or any other Person, without the prior written consent of Franchisor, during the Term (i) have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business, regardless of location or (ii) perform services as a director, officer, manager, employee, consultant, representative, agent, or otherwise for a Competitive Business, regardless of location.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a 'Restricted Party' includes more than just the franchisee and their spouse. Specifically, if the franchisee is not an individual, the term also encompasses each of its Owners and their spouses. These Restricted Parties are subject to certain covenants, particularly those related to non-competition, both during the term of the franchise agreement and for a period of two years after its termination or expiration.
These restrictive covenants prevent Restricted Parties from having any direct or indirect interest in a Competitive Business or performing services for one. This restriction applies regardless of the location of the Competitive Business. The aim is to protect Face Foundrie's business model, operating methods, and confidential information.
As a condition of the franchise agreement, each Restricted Party must sign and deliver to Face Foundrie the Personal Covenants, agreeing to be personally bound by specific sections of the agreement related to restrictive covenants. If there are any changes in the identity of any Restricted Party during the agreement, the franchisee must promptly notify Face Foundrie and ensure the new Restricted Party signs and delivers the Personal Covenants. This ensures that all individuals who fall under the definition of 'Restricted Party' are legally bound by the non-compete and confidentiality obligations, safeguarding Face Foundrie's interests.