What rights does Face Foundrie retain regarding the operation of other businesses within the Development Area?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
n this Agreement is described in Section 15 below.
- 2.02 Protected Territory. During the Term, Franchisor will not operate (directly or through an Affiliate), nor grant to another Person the right to operate, any Face Foundrié Facial Bar located within the geographical area set forth on Exhibit A hereto (the "Protected Territory"). Notwithstanding the foregoing, Franchisor has the right to operate (directly or through an Affiliate), and to grant to others the right to operate, within the Protected Territory and elsewhere: (a) Face Foundrié Facial Bars or other businesses using any part or all of the System and/or Marks that are operating as of the Effective Date; and (b) businesses that Franchisor or its Affiliates purchase (or as to which Franchisor or its Affiliates purchases the rights as franchisor) that are part of another franchise system or chain and either continue to operate them independently or convert them to Face Foundrié Facial Bars.
- 2.03 Reservation of Rights. Notwithstanding anything to the contrary set forth herein, Franchisor retains the right, in its sole discretion, to:
- (a) establish and operate, and grant to other franchisees or licensees the right to establish and operate, a Face Foundrié Facial Bar or any other business using the Marks, the System or any variation of the Marks and the System, (i) in any location outside the Protected Territory or (ii) as contemplated by Section 2.02 above; in each case on any terms and conditions that Franchisor deems appropriate;
- (b) develop, use and franchise anywhere (including within the Protected Territory) the rights to any trade names, trademarks, service marks, commercial symbols, logos, emblems, signs, slogans, insignia, patents or copyrights not designated by Franchisor as Marks, for use with similar or different franchise systems for the sale of similar or different products or services than those constituting a part of the System, without granting Franchisee any rights therein;
- (c) own, operate, franchise or license anywhere businesses offering products and services of any other type whatsoever operating under marks other than the Marks;
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to the 2025 Face Foundrie FDD, Face Foundrie retains several rights regarding business operations within the Development Area, even after granting development rights to an Area Developer. Face Foundrie can operate (directly or through an affiliate) or grant others the right to operate Face Foundrié Facial Bars or other businesses using the Face Foundrie system and marks that were already operating as of the agreement's effective date. Face Foundrie also has the right to operate or franchise businesses it purchases, or acquires the rights to as a franchisor, even if they are part of another franchise system or chain, and may continue to operate them independently or convert them to Face Foundrié Facial Bars.
Face Foundrie also retains the right to develop, use, and franchise anywhere, including within the Development Area, any trade names, trademarks, service marks, commercial symbols, logos, emblems, signs, slogans, insignia, patents, or copyrights not designated as Face Foundrie's Marks. This allows Face Foundrie to diversify and explore other business opportunities without granting the Area Developer any rights to these ventures. Additionally, Face Foundrie can own, operate, franchise, or license businesses offering any type of products and services under marks other than Face Foundrie's Marks, providing further flexibility in its business endeavors.
Furthermore, Face Foundrie can offer, distribute, sell, and provide products or services identified by the Marks or other trademarks, service marks, commercial symbols, or emblems to customers located in the Development Area through any distribution channel or method. This includes the Internet, smart phone applications, mail order, telemarketing, mass merchandise stores, and supermarkets. However, such sales cannot be made from a Face Foundrié Facial Bar located within the Development Area, ensuring that the Area Developer's physical location maintains its exclusivity for in-person services. These reserved rights provide Face Foundrie with significant control and flexibility over its brand and business operations, even within areas where it has granted development rights to Area Developers.