Does Face Foundrie have the right to sell its assets, Marks, or System?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, and without limitation to the foregoing, Area Developer expressly affirms and agrees that Franchisor may sell its assets, its Marks, or its System; may sell its securities in a public offering or in a private placement; may merge, acquire other corporations, or be acquired by another corporation; and may undertake a refinancing, recapitalization, leveraged buy-out, or other economic or financial restructuring.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to the 2025 Face Foundrie FDD, Face Foundrie retains the right to sell its assets, Marks, or System. Specifically, Face Foundrie can sell its assets, Marks, or System; sell its securities through public or private offerings; merge with or acquire other corporations; or undergo financial restructuring. This action can be done without limitation.
This clause protects Face Foundrie's flexibility in making strategic business decisions. It allows Face Foundrie to adapt to market changes, pursue growth opportunities, or adjust its business model as needed without requiring the consent of individual area developers.
For a prospective area developer, this means that the future ownership and direction of Face Foundrie could change. While this could lead to positive changes, such as increased investment or improved systems, it also carries the risk of altering the brand's vision or operational standards. Area developers should consider this potential for change and evaluate whether they are comfortable with the possibility of a new owner or business structure influencing the franchise system.