Which sections of the Face Foundrie Franchise Agreement are Restricted Parties required to be personally bound by according to the Personal Covenants?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.04 Personal Covenants of Restricted Parties. As a condition to the effectiveness of this Agreement, and at the time Franchisee delivers this signed Agreement to Franchisor, each Restricted Party must sign and deliver to Franchisor the Personal Covenants attached hereto as Exhibit E (the "Personal Covenants"), agreeing to be bound personally by all the provisions of Sections 7.01, 7.02, 7.03, 7.06 and 13.05 hereof. If there are any changes in the identity of any such Restricted Party while this Agreement is in effect, Franchisee must notify Franchisor promptly and cause the new Restricted Party to sign and deliver to Franchisor the Personal Covenants.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, as a condition of the Franchise Agreement's effectiveness, each Restricted Party must sign and deliver the Personal Covenants (Exhibit E) to Face Foundrie. By signing this document, the Restricted Parties agree to be personally bound by the provisions outlined in specific sections of the agreement.
Specifically, the Restricted Parties must adhere to the provisions detailed in Sections 7.01, 7.02, 7.03, 7.06, and 13.05 of the Franchise Agreement. These sections likely cover critical aspects such as non-compete obligations, confidentiality, and other key operational and financial responsibilities.
If there are any changes to the Restricted Parties during the term of the Franchise Agreement, the franchisee is obligated to promptly notify Face Foundrie. Furthermore, the franchisee must ensure that any new Restricted Party signs and delivers the Personal Covenants to Face Foundrie, thereby agreeing to be bound by the same sections of the agreement as the original Restricted Parties.