What specific agreements, besides the main agreement, are covered by the indemnification provided to Face Foundrie Franchising L.L.C. in the Face Foundrie Area Development Agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, for and in consideration of the covenants and agreements hereinafter set forth, the parties hereto covenant and agree as follows:
1. GRANT
1.1 Grant and Acceptance. Franchisor grants development rights to Area Developer, and Area Developer undertakes the obligation, pursuant to the terms and conditions of this Agreement, to develop no less than the number of Face Foundrié Facial Bars (the "Franchised Facial Bars") as set forth in Exhibit A to this Agreement. In this regard, the parties further agree that:
- 1.1.1 Each Franchised Facial Bar developed hereunder shall be operated pursuant to a separate Face Foundrié Franchise Agreement with Franchisor (a "Franchise Agreement") that shall be executed as provided in Section 3.4 below.
- 1.1.2 For each Franchised Facial Bar to be developed under this Agreement, Area Developer shall execute the Franchise Agreement for such Franchised Facial Bar in accordance with the deadlines set forth in the development schedule specified in Paragraph 1 of Exhibit A to this Agreement (the "Development Schedule").
1.1.3 Each Franchised Facial Bar developed hereunder shall be at a specific location, which shall be designated in the Franchise Agreement, that is within in the area described in Paragraph 2 of Exhibit A to this Agreement (the "Development Area").
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
Based on the 2025 Face Foundrie Franchise Disclosure Document, the Area Development Agreement stipulates that each Face Foundrie Facial Bar developed under the agreement will operate under a separate Face Foundrie Franchise Agreement. This Franchise Agreement is executed as per Section 3.4 of the Area Development Agreement. The agreement also specifies that the location of each Facial Bar will be designated within the Franchise Agreement, inside the Development Area outlined in Paragraph 2 of Exhibit A.
This means that in addition to the Area Development Agreement, the Franchise Agreement is a crucial document that governs the relationship between the area developer and Face Foundrie. The Area Developer must sign a Franchise Agreement for each location they plan to develop according to the schedule in Exhibit A. The Franchise Agreement will detail the specific location and other operational terms for each Face Foundrie Facial Bar.
For a prospective area developer, this highlights the importance of carefully reviewing both the Area Development Agreement and the standard Franchise Agreement. Understanding the obligations and rights under both agreements is essential, as the Area Development Agreement sets the stage for future Franchise Agreements. The interplay between these agreements dictates the pace and scope of development, as well as the operational framework for each Face Foundrie location.