Are there any exceptions to Face Foundrie's promise not to operate or franchise within a franchisee's Protected Territory?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
t and expense, and Franchisor shall have the right to charge Franchisee a relocation fee equal to One Thousand Dollars ($1,000) plus any expenses Franchisor incurs in facilitating the relocation. The option for renewal of the rights granted to Franchisee in this Agreement is described in Section 15 below.
- 2.02 Protected Territory. During the Term, Franchisor will not operate (directly or through an Affiliate), nor grant to another Person the right to operate, any Face Foundrié Facial Bar located within the geographical area set forth on Exhibit A hereto (the "Protected Territory"). Notwithstanding the foregoing, Franchisor has the right to operate (directly or through an Affiliate), and to grant to others the right to operate, within the Protected Territory and elsewhere: (a) Face Foundrié Facial Bars or other businesses using any part or all of the System and/or Marks that are operating as of the Effective Date; and (b) businesses that Franchisor or its Affiliates purchase (or as to which Franchisor or its Affiliates purchases the rights as franchisor) that are part of another franchise system or chain and either continue to operate them independently or convert them to Face Foundrié Facial Bars.
- 2.03 Reservation of Rights. Notwithstanding anything to the contrary set forth herein, Franchisor retains the right, in its sole discretion, to:
- (a) establish and operate, and grant to other franchisees or licensees the right to establish and operate, a Face Foundrié Facial Bar or any other business using the Marks, the System or any variation of the Marks and the System, (i) in any location outside the Protected Territory or (ii) as contemplated by Section 2.02 above; in each case on any terms and conditions that Franchisor deems appropriate;
- (b) develop, use and franchise anywhere (including within the Protected Territory) the rights to any trade names, trademarks, service marks, commercial symbols, logos, emblems, signs, slogans, insignia, patents or copyrights not designated by Franchisor as Marks, for use with similar or different franchise systems for the sale of similar or different products or services than those constituting a part of the System, without granting Franchisee any rights therein;
- (c) own, operate, franchise or license anywhere businesses offering products and services of any other type whatsoever operating under marks other than the Marks;
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, while Face Foundrie typically grants a protected territory, there are several exceptions where they can still operate or grant franchises within that territory. Specifically, Face Foundrie retains the right to operate or franchise Face Foundrie Facial Bars or other businesses using their system and marks that were already operating as of the franchise agreement's effective date. They can also operate or franchise businesses they acquire, even if those businesses are part of another franchise system or chain, and either continue to operate them independently or convert them to Face Foundrie Facial Bars.
Face Foundrie also retains the right to develop, use, and franchise anywhere (including within the Protected Territory) the rights to any trade names, trademarks, service marks, commercial symbols, logos, emblems, signs, slogans, insignia, patents or copyrights not designated by Franchisor as Marks, for use with similar or different franchise systems for the sale of similar or different products or services than those constituting a part of the System, without granting Franchisee any rights therein. Additionally, Face Foundrie can own, operate, franchise, or license businesses offering different products and services under different marks anywhere.
Furthermore, Face Foundrie can sell products or services identified by their marks to customers within the protected territory through various distribution channels, including the internet, mobile apps, mail order, telemarketing, mass merchandise stores, and supermarkets. However, these sales cannot be made from a Face Foundrie Facial Bar located within the franchisee's protected territory. This means that while a franchisee has some territorial protection, Face Foundrie retains significant rights to operate and sell within that territory through other means.