What is a 'Territory' as defined in the Face Foundrie Franchise Agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
her Facial Bar. Until a site has been identified, you will not have any rights to operate your Facial Bar at any specific location.
Your Franchise Agreement may also specify a protected territory ("Territory"). We may attach a map to your Franchise Agreement that will identify the territory or we may simply describe an area surrounding your location. The map or description may not be a specific radius from your Facial Bar, because it will take into account traffic patterns and natural boundaries. Because each location is different, the Territory for each Facial Bar will be different; however, each Territory will generally contain a population of up to 40,000 individuals and range from a one to three-mile radius around the Facial Bar. The size and scope of the Territory will be determined, in our sole discretion, during the site confirmation process based upon various factors such as (a) whether the approved location is an urban area or a suburban area; (b) population of the area; (c) competition in the area; and (d) policies regarding protected territories and other conditions that we deem appropriate; among other factors.
Except as noted below, as long as you are in compliance with the Franchise Agreement, we will not operate a Facial Bar or grant to a third party the right to operate a Facial Bar within your Territory. Protected territories may overlap, but we will not approve anyone opening or operating a FACE FOUNDRIÉ facial bar within the protected territory given to another facial bar.
You may not move or relocate your Facial Bar without our prior written consent, which consent will not be unreasonably withheld. A request for relocation must be made in writing, stating the new location, received by us at least 60 days before the date of intended relocation, and be accompanied by a relocation fee of $1,000 (the "Relocation Fee"). The new location must be within your territory, and it may not be located within any territory we grant to any other franchisee. In addition to the Relocation Fee, you will be responsible for any additional expenses we incur in facilitating your relocation.
Under the Franchise Agreement and Area Development Agreement
We may also have situations where we designate a "TBD" (to be determined) search area, protected territory or development territory. If you receive a TBD territory, you have the right to look for a site in any area that has not already been given as a protected territory, search area, or development territory to another FACE FOUNDRIÉ facial bar. However, if you find a proposed site in near proximity to another FACE FOUNDRIÉ facial bar, even though not in that facial bar's protected territory, we may offer the site to the existing franchisee before we agree to assign that area to you or grant you the right to develop your Facial Bar at that site.
If you do not name a protected territory or development territory, or if your protected territory or development territory is "to be determined" you will not have rights to a protected territory until you name a location that is approved by us and we assign your protected territory or development territory, as applicable. In this case, you may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Other
As a result of our reserved rights described in this Item 12, you will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we or our affiliates own, or from other channels of distribution or competitive brands that we or our affiliates control. You have no options, rights of first refusal or similar rights to acquire additional franchises or establish additional Facial Bars. We are not obligated to pay compensation to you for soliciting customers from your franchise territory. We have not established any minimum sales quota and do not require any certain level of sales, revenue volume or market penetration in order for you to maintain your Territory. We will not reduce the size of your Territory even if the population in it increases. Likewise, we will not expand the size of your Territory if the population in it decreases. We cannot alter your Territory unless you give us your written consent. Without our prior written consent, you may not conduct sales activities outside your Territory. You may not conduct any Facial Bar activities outside of the premises of your Facial Bar unless we have approved such activities in writing, and you may not use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, to make sales outside of your Territory.
Source: Item 12 — TERRITORY (FDD pages 43–46)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a Territory is a protected area granted to a franchisee in the Franchise Agreement, allowing them to operate a Facial Bar at a specific, approved location. Face Foundrie may attach a map to the Franchise Agreement that identifies the territory, or they may simply describe an area surrounding the location. The territory's size and scope are determined by Face Foundrie during the site confirmation process, considering factors like whether the location is urban or suburban, the area's population, competition, and Face Foundrie's policies regarding protected territories. Each Territory will generally contain a population of up to 40,000 individuals and range from a one to three-mile radius around the Facial Bar.
While Face Foundrie aims to prevent direct competition by not granting another franchisee the right to operate a Facial Bar within your Territory, protected territories may overlap. Franchisees cannot move or relocate their Facial Bar without Face Foundrie's prior written consent, and any relocation request must be submitted in writing at least 60 days before the intended relocation date, along with a $1,000 Relocation Fee. The new location must be within the franchisee's territory and not within another franchisee's territory.
However, Face Foundrie retains significant rights that can impact a franchisee's territory. They reserve the right to operate or franchise similar businesses under different names and symbols, even within a franchisee's Territory. They can also distribute products or offer services similar to those found in Facial Bars through various channels, including the Internet, mail order, and catalogs, both within and outside the Territory, as long as they do not do so through the operation of a Facial Bar. Face Foundrie also has the exclusive right to sell products identified with their Marks through any distribution channel, except through a Facial Bar, even if the franchisee sells these products at their Facial Bar. As a result, Face Foundrie franchisees do not receive an exclusive territory and may face competition from other franchisees, outlets owned by Face Foundrie or its affiliates, or other channels of distribution controlled by them.
Furthermore, Face Foundrie is not obligated to pay compensation to franchisees for soliciting customers from their franchise territory and has not established any minimum sales quota or required any certain level of sales, revenue volume or market penetration in order for a franchisee to maintain their Territory. Face Foundrie will not reduce the size of a franchisee's Territory even if the population in it increases, nor will they expand the size of the Territory if the population in it decreases, unless the franchisee gives them written consent. Franchisees may not conduct sales activities outside their Territory without Face Foundrie's prior written consent or use other channels of distribution, such as the Internet, catalog sales, or telemarketing, to make sales outside of their Territory.