What is the significance of the 'Effective Date' in the Face Foundrie Franchise Agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS FRANCHISE AGREEMENT (this "Agreement") is made and entered into this day of | |
|---|---|
| , 20 (the "Effective Date"), by and between FACE FOUNDRIÉ | |
| FRANCHISING | |
| L.L.C., a Minnesota limited liability company with its principal office at 6446 Flying Cloud Drive, Eden Prairie, | |
| Minnesota 55344 ("Franchisor," | |
| "we," or "us"), and, a, | |
| with its principal office at ("Franchisee" | |
| or "you"). | |
| W I T N E S S E T H: |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the 'Effective Date' marks the commencement of the 10-year term for the franchise agreement. Specifically, the franchisee gains the right and obligation to operate a Face Foundrie Facial Bar at the designated location, utilizing the Face Foundrie system and trademarks, starting from this date.
The 'Effective Date' is important because it determines the length of the franchise agreement and when renewal options become available. It also triggers certain obligations and restrictions for both Face Foundrie and the franchisee, such as Face Foundrie's commitment not to operate or franchise another Face Foundrie Facial Bar within the franchisee's protected territory during the term. This date is referenced in relation to the assignment of telephone listings and numbers used for the Face Foundrie Facial Bar, where the franchisee's right to use these terminates upon the expiration or termination of the Franchise Agreement.
Furthermore, the 'Effective Date' can impact Face Foundrie's ability to operate other businesses within the franchisee's protected territory. Face Foundrie retains the right to operate or franchise other businesses using the Face Foundrie system or marks that were already operating as of the 'Effective Date'. This means that any pre-existing Face Foundrie locations or acquired businesses operating under a different franchise system as of the 'Effective Date' are exempt from the franchisee's protected territory. Therefore, the 'Effective Date' is a critical reference point for defining the scope and limitations of the franchise agreement and the franchisee's rights and responsibilities.