After termination of a Face Foundrie franchise, what is the geographic radius within which a franchisee is prohibited from operating a Competitive Business?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Post-Term Non-Competition. In addition to and not in limitation of any other restrictions on Franchisee contained herein, Franchisee and the Restricted Parties agree that they will not, for two (2) years following the effective date of termination or expiration of this Agreement for any reason, or following the date of a Transfer by Franchisee, or, with respect to a Restricted Party only, by such Restricted Party, directly or indirectly, for and on behalf of itself, himself, herself or any other Person, without the prior written consent of Franchisor, (i) have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business or (ii) perform services as a director, officer, manager, employee, consultant, representative, agent, or otherwise for a Competitive Business which, in either case, is located or operating within a ten (10) mile radius of the protected territory of any Face Foundrié Facial Bar in operation or under construction on the effective date of termination or expiration.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees are subject to certain post-term non-competition restrictions. Specifically, for two years following the termination or expiration of the Franchise Agreement, the franchisee and related parties are prohibited from having a direct or indirect interest in a Competitive Business. This restriction applies to businesses located or operating within a ten-mile radius of the protected territory of any Face Foundrie Facial Bar that is in operation or under construction at the time of termination or expiration.
This non-compete clause prevents former Face Foundrie franchisees from leveraging the knowledge and experience gained during their franchise term to directly compete with existing Face Foundrie locations. The term "Restricted Parties" includes the franchisee, their spouse, and, if the franchisee is not an individual, each of its owners and their spouses. This broad definition ensures that the non-compete obligations extend beyond just the franchisee as an individual.
The restriction applies if the Competitive Business is either located or operating within the specified radius. This means that even if the physical location of the competing business is outside the ten-mile radius, if it is actively serving customers within that area, it would be considered a violation of the non-compete agreement. Prospective franchisees should carefully consider the implications of this restriction, especially if they plan to remain in the same geographic area after the franchise agreement ends.