During the term of the Face Foundrie franchise, what non-competition covenants apply?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section(s) in | Summary | |
|---|---|---|---|
| (q) Non-competition covenants during the term of the franchise | Section 8.2 | No direct or indirect involvement in competitive business. | |
| (r) Non-competition covenants after the franchise is terminated or expires | Section 8.3 | For two years, no involvement in competitive business located within a 10-mile radius of any Facial Bar. |
NONCOMPETITION COVENANTS. Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provision contained in the franchise agreement or elsewhere that conflicts with these limitations is void and unenforceable in Washington.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, during the term of the franchise agreement, franchisees are subject to non-competition covenants that restrict direct or indirect involvement in any competitive business. This means that while operating a Face Foundrie franchise, a franchisee cannot own, operate, or be involved with any other business that offers similar services or products. This restriction is fairly standard in the franchise industry, as it protects the brand and prevents franchisees from using the franchisor's resources and knowledge to benefit a competing business.
Specifically for Washington state, the FDD states that pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation).
These non-competition terms are designed to protect Face Foundrie's market position and proprietary information. Franchisees should carefully consider these restrictions and ensure they do not have any conflicting business interests before signing the Franchise Agreement. It is also important to note that the specific terms and enforceability of non-competition agreements can vary by state, so franchisees should seek legal advice to understand their obligations fully.