What specific right does Face Foundrie have as a third-party beneficiary of the confidentiality, noncompetition, and/or nonsolicitation agreements?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.05 Agreements by Other Third Parties. As a condition to Franchisor's execution of this Agreement, Franchisee, if requested by Franchisor, shall cause its Operating Partner, each owner, officer and director (including their spouses), to execute a confidentiality, noncompetition, and/or nonsolicitation agreement in the form(s) approved or prescribed by Franchisor from time to time, which shall include specific identification of Franchisor as a third-party beneficiary of such covenants with the independent right to enforce them. In addition, Franchisee shall require its Salon Manager(s), managers, assistant managers, and any other personnel having access to any confidential information of Franchisor to execute covenants that they will maintain the confidentiality of information they receive in connection with their employment or engagement by Franchisee at the Facial Bar. Such covenants shall be in a form approved by Franchisor, including specific identification of Franchisor as a third-party beneficiary of such covenants with the independent right to enforce them, the current form of which is attached hereto as Exhibit I. You must deliver copies of such completed agreements within three (3) days of our request.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, Face Foundrie requires franchisees to ensure that certain parties, such as operating partners, owners, officers, directors, and salon managers, execute confidentiality, noncompetition, and/or nonsolicitation agreements. Face Foundrie is specifically identified as a third-party beneficiary in these agreements. This grants Face Foundrie the independent right to enforce these covenants.
This provision is designed to protect Face Foundrie's confidential information, business methods, and overall interests by preventing individuals with access to sensitive information from using it to compete against the franchise system. By having the right to enforce these agreements, Face Foundrie can directly take legal action against those who violate the terms, ensuring that the restrictions are upheld.
For a prospective franchisee, this means they must ensure that all relevant parties sign the required agreements, acknowledging Face Foundrie's right to enforce them. Failure to do so could result in a breach of the franchise agreement. This requirement underscores the importance Face Foundrie places on protecting its system and confidential information, and it highlights the franchisee's responsibility in maintaining that protection.