Does the restriction on competitive activities in the Face Foundrie Area Developer Agreement apply to the ownership of other Face Foundrié Facial Bars licensed by the Franchisor?

According to Face Foundrie's 2025 Franchise Disclosure Document, the restrictions on competitive activities outlined in the Area Developer Agreement do not apply to the ownership or operation of other Face Foundrié Facial Bars that are licensed or franchised by Face Foundrie or its affiliates. This means an Area Developer can own and operate multiple Face Foundrie locations without violating the competitive business restrictions in the agreement. However, this exception is specifically for Face Foundrie locations licensed or franchised by the company.

The Area Developer is restricted from owning, maintaining, operating, or having any interest in a "Competitive Business," which is defined as any business where more than 10% of its offerings consist of facial services or beauty treatments for the face, or that offers waxing services. This restriction is in place to protect Face Foundrie's market share and prevent Area Developers from diverting business to competing establishments.

This exception allows Area Developers to expand their investment within the Face Foundrie system without being penalized by the non-compete clause. It encourages growth within the franchise and aligns the Area Developer's interests with the overall success of the Face Foundrie brand. However, it's important to note that this exception is limited to Face Foundrie-branded locations and does not permit investment in other competing businesses as defined in the agreement.