After termination or expiration, can Face Foundrie establish or franchise others to establish Face Foundrie Facial Bars in the Development Area?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration, Franchisor shall be entitled to establish, and to franchise others to establish, Face Foundrié Facial Bars in the Development Area, except as may be otherwise provided under any Franchise Agreement which has been executed between Franchisor and Area Developer or Area Developer's affiliates (as permitted under Section 3.4.3 above).
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, upon termination or expiration of the Area Development Agreement, Face Foundrie is generally entitled to establish and franchise others to establish Face Foundrie Facial Bars in the Development Area. However, this is subject to any provisions outlined in a Franchise Agreement that has been executed between Face Foundrie and the Area Developer or the Area Developer's affiliates.
This means that if an Area Developer's agreement ends, Face Foundrie can set up its own locations or allow new franchisees to open in the area that was previously under the Area Developer's control. The exception to this is if there's a pre-existing Franchise Agreement that specifies otherwise. This clause protects any individual Face Foundrie franchise agreements that may be in place within the larger development area.
This provision is fairly standard in area development franchise agreements, as it allows the franchisor to maintain control over the brand's expansion and market presence, especially after an area developer's term has ended. It ensures Face Foundrie can continue to grow and support the brand in that area, regardless of the previous developer's status.