Does Face Foundrie have specific requirements for the 'Operating Partner' of a transferee entity?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
lans and specifications have been given to Franchisee). Franchisee further understands and acknowledges that each Face Foundrié Facial Bar will be designed differently depending on the specifications of the Premises. Franchisee shall adapt the standard plans to the Facial Bar's location, subject to Franchisor's approval.
4. TRAINING AND GUIDANCE.
4.01 Franchisor Training Programs. The Facial Bar must have an individual that is designated by Franchisee to assume primary responsibility for managing the Facial Bar, and is required to own at least twenty percent (20%) of the outstanding equity of Franchisee (the "Operating Partner"). The Operating Partner must meet our qualifications and must be approved by us. Your Operating Partner must devote fulltime and best efforts to the operation of your Facial Bar. Without our written consent, your Operating Partner may not engage in any business other than the operation of your Facial Bar. Your Operating Partner must be empowered with full authority to act for you and we will be entitled to rely solely on the decision of the
Operating Partner without discussing the matter with any other party. In the event that your Operating Partner ceases to own at least a 20% ownership interest and voting interest in you, or fails to meet our requirements, you must designate a new Operating Partner within thirty (30) days for our review and approval.
Franchisee will inform Franchisor in writing as to the identity of the Operating Partner and its Salon Manager, including all additions to and successors. As and when required by Franchisor, the Operating Partner and the Salon Manager must attend and successfully complete to the satisfaction of Franchisor an initial management training program specified by Franchisor, and are required to complete the initial training program before the Facial Bar may open for business. No fee will be charged by Franchisor for the participation of up to three (3) individuals in the training program, however, Franchisee shall be responsible for the costs and expenses (such as transportation, lodging, meals, compensation and incidental expenses) of each individual who attends the training. You may invite additional employees to attend the initial training program if space allows, though we reserve the right to charge you our then-current training fee for each additional individual. We also reserve the right to limit the number of additional attendees for the initial training program. We reserve the right to require your assistant managers to attend the initial training program, in our sole discretion.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Operating Partner must meet certain qualifications. The Operating Partner must own and control, or have the right to own and control, at least 20% interest in the franchisee's equity and voting rights. They must also have the authority to make operational decisions for the Facial Bar and have completed Face Foundrie's training program.
The Operating Partner is required to devote their full-time efforts to the Facial Bar and cannot engage in other business activities that demand significant time or responsibility without Face Foundrie's approval. Franchisees must provide Face Foundrie with any proposed arrangements or contracts with the Operating Partner for review and approval. Face Foundrie retains the right to rely solely on the Operating Partner's decisions without consulting other parties.
If the Operating Partner ceases to own at least 20% ownership and voting interest or fails to meet Face Foundrie's requirements, the franchisee must designate a new Operating Partner within 30 days for Face Foundrie's review and approval. The names of the Operating Partner and Salon Manager must be provided to Face Foundrie in writing, and this information must be kept current. Franchisees must promptly notify Face Foundrie if an Operating Partner can no longer serve in that capacity and take corrective action within 30 days of such notice.
In the event of the death or permanent disability of the Operating Partner, the representative of the person has a maximum of six months to transfer their interest to a third party approved by Face Foundrie. The role of the Operating Partner is critical to the successful operation of the Face Foundrie franchise, and these requirements ensure that the individual in this position is qualified and dedicated to the business.