Are there any exceptions to the restrictions on competitive activities for Face Foundrie franchisees?

According to Face Foundrie's 2025 Franchise Disclosure Document, there are specific exceptions to the restrictions on competitive activities for franchisees. These exceptions allow a franchisee to engage in certain activities that would otherwise be considered competitive without violating the franchise agreement.

Specifically, the restrictions do not apply to the ownership or operation of other Face Foundrie Facial Bars that are licensed or franchised by Face Foundrie or any of its affiliates. This means a franchisee can own and operate multiple Face Foundrie locations without being in violation of competitive restrictions. Additionally, the restrictions do not apply to the ownership of shares of a class of securities that are listed on a public stock exchange or traded on the over-the-counter market, provided that such shares represent less than five percent (5%) of that class of securities. This allows franchisees to invest in publicly traded companies, even those that may have some beauty-related business, as long as their ownership stake is minimal.

These exceptions provide Face Foundrie franchisees with some flexibility in their business and investment activities. It is important for prospective franchisees to understand these exceptions and how they may impact their ability to diversify their business interests. Franchisees should ensure they remain compliant with the franchise agreement and do not engage in any activities that would violate the competitive restrictions, except as explicitly allowed under these exceptions.