What section of the Face Foundrie agreement outlines the conditions for immediate termination related to competitive business activities?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Area Developer acknowledges and agrees that Area Developer shall be considered in default under this Agreement and that this Agreement will be subject to immediate termination as provided in Section 6.2 herein, in the event that a person in the immediate family (including spouse, domestic partner, parent or child) of Area Developer (or, if Area Developer is other than an individual, each Principal that is subject to these covenants) engages in a Competitive Business that would violate this Section 8.2.3 if such person was subject to the covenants of this Section 8.2.3.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Section 6.2 outlines the conditions for immediate termination related to competitive business activities. Specifically, the agreement will be subject to immediate termination if an immediate family member of the Area Developer, such as a spouse, domestic partner, parent, or child, engages in a Competitive Business that would violate Section 8.2.3 if the family member were subject to those covenants. This condition applies to each Principal if the Area Developer is not an individual.
Section 8.2.3 defines a "Competitive Business" as any business operating or franchising an establishment where more than 10% of the offerings consist of facial services or beauty treatments for the face, or that offers waxing services. This restriction aims to prevent franchisees and their immediate family members from directly competing with Face Foundrie during the term of the agreement.
This clause is significant because it extends the non-compete obligations to the franchisee's immediate family, meaning a franchisee needs to ensure their close relatives also refrain from engaging in competitive businesses. Failure to comply can result in immediate termination of the franchise agreement, highlighting the importance of understanding and adhering to these restrictions to maintain the franchise rights.