What specific actions are considered 'injurious or prejudicial to the goodwill' of the Face Foundrie system?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
8.2.1 Divert or attempt to divert any business or guest of any Face Foundrié Facial Bar or of any unit under the System to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks or the System.
8.2.2 Unless released in writing by the employer, employ or seek to employ any person who is at that time employed by Franchisor or by any other franchisee or area developer of Franchisor, or otherwise directly or indirectly induce such person to leave his or her employment.
8.2.3 Own, maintain, operate, engage in, be employed by, provide any assistance to, or have any interest in (as owner or otherwise) any Competitive Business (as defined below).
A "Competitive Business" is any business includes any business operating or franchising an establishment (i) at which more than 10% of the offerings consists of facial services or beauty treatments for the face, or (ii) that offers waxing services.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, an Area Developer is prohibited from performing any act that is 'injurious or prejudicial to the goodwill associated with the Marks or the System.' Specifically, the Area Developer cannot divert or attempt to divert business or guests of any Face Foundrié Facial Bar to a competitor.
Additionally, the Area Developer is restricted from employing or attempting to employ anyone who is currently employed by Face Foundrié or any of its other franchisees or area developers, unless they have written permission from the employer. They also cannot directly or indirectly induce such a person to leave their employment.
Furthermore, the Area Developer is prohibited from owning, maintaining, operating, engaging in, being employed by, providing assistance to, or having any interest in a 'Competitive Business.' A Competitive Business is defined as any business operating or franchising an establishment where more than 10% of its offerings consist of facial services or beauty treatments for the face, or that offers waxing services. These restrictions aim to protect Face Foundrié's market position and brand reputation by preventing franchisees from directly competing with the system or poaching its talent.