factual

What is the significance of including the Face Foundrie franchisee's principal business address in the Addendum?

Face_Foundrie Franchise · 2025 FDD

Answer from 2025 FDD Document

THIS ADDENDUM (the "Addendum") is made and entered into by and between FACE FOUNDRIÉ FRANCHISING L.L.C., a Minnesota limited liability company ("Franchisor") with its
principal
business
address
at
6446
Flying
Cloud
Drive,
Eden
Prairie,
Minnesota
55344,
and
, a ("Franchisee"), whose principal
business address is
1.
BACKGROUND. Franchisor and Franchisee are parties to that certain Franchise Agreement
dated, 20 (the "Franchise Agreement"). This Addendum is annexed to
and forms part of the Franchise Agreement. This Addendum is being signed because
(a) the Facial Bar that
Franchisee will operate under the Franchise Agreement will be located in Maryland; and/or (b) any of the
offering or sales activity relating to the Franchise Agreement occurred in Maryland.
2.
RELEASES. The following is added to the end of Sections 13.02 and 15.03 of the Franchise
Agreement:
Any release required as a condition of renewal, sale and/or assignment/transfer will not apply
to
any claims or liability arising under the Maryland Franchise Registration and Disclosure
Law.
3.
INSOLVENCY.
The following sentence is added to the end of Section 14.02
of the
Franchise Agreement:
Section 14.02 may not be enforceable under federal bankruptcy law (11 U.S.C. Sections 101
et seq.).
4.
FORUM FOR LITIGATION. The following language is added to the end of Section 18.04
of the Franchise Agreement:
Franchisee may bring an action in Maryland for claims arising under the Maryland Franchise
Registration and Disclosure Law.
5.
GOVERNING LAW. The following statement is added at the end of Section 19.04 of the
Franchise Agreement:
Notwithstanding the foregoing, the Maryland Franchise Registration and Disclosure Law shall
govern any claim arising under that law.
6.
LIMITATION OF CLAIMS. The following is added to the end of Section
18.06 of the
Franchise Agreement:
Franchisee must bring any claims arising under the Maryland Franchise
Registration and Disclosure Law within three years after Franchisor grants Franchisee
the franchise.

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2025 FDD)

According to the 2025 Face Foundrie Franchise Disclosure Document, the franchisee's principal business address is included in the addendum to the franchise agreement. This addendum is a supplement to the main agreement and is signed because the Face Foundrie Facial Bar will be located in a specific state (like New York, Minnesota, Maryland, or Washington) or because the franchise sales activities occurred there. Including the franchisee's address ensures that any location-specific legal considerations are properly addressed within the franchise agreement. This is a standard legal practice to ensure compliance with local laws and regulations.

The addendum modifies certain sections of the standard franchise agreement to reflect the specific legal requirements of the state where the Face Foundrie franchise will operate. These modifications can include stipulations about termination rights, renewal conditions, and dispute resolution processes. For example, the addendum may specify that certain release requirements do not apply to the extent prohibited by state law, or it might grant the franchisee additional termination rights as provided by state statutes. These adjustments are crucial for protecting the franchisee's rights and ensuring that the franchise agreement complies with local legal standards.

For a prospective Face Foundrie franchisee, the inclusion of their business address in the addendum signifies that the franchise agreement is being tailored to comply with the laws of their specific state. This can provide added security and legal protection, as the addendum addresses potential conflicts between the standard franchise agreement and local regulations. Franchisees should carefully review the addendum to understand how it modifies their rights and obligations under the franchise agreement, and they should seek legal counsel to ensure they fully understand the implications of these state-specific provisions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.