Can Face Foundrie terminate the agreement if an owner pleads no contest to a felony?

According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie can terminate the franchise agreement if the franchisee or any of the owners are convicted of or plead no contest to a felony. This also applies to a crime involving moral turpitude or any other crime or offense that is likely to adversely affect the reputation of the Face Foundrie system and the goodwill associated with its marks.

This clause in the franchise agreement protects Face Foundrie's brand and reputation. A franchisee's or owner's criminal behavior, even if it doesn't directly relate to the business, could damage the public's perception of the franchise. The inclusion of a "no contest" plea is significant because it allows Face Foundrie to terminate the agreement even if there isn't a formal conviction, acknowledging that a plea of no contest can carry similar implications.

For a prospective Face Foundrie franchisee, this means that their personal conduct and the conduct of any owners involved in the franchise are subject to scrutiny. Any criminal charges, especially felonies or crimes involving moral turpitude, could jeopardize their franchise agreement. This underscores the importance of maintaining a clean criminal record and ensuring that all owners do as well. Franchisees should seek legal counsel if they or any owners face such charges to understand the potential ramifications for their franchise agreement.