Can Face Foundrie transfer its Area Development Agreement without the Area Developer's consent?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
7. TRANSFER OF INTEREST
- 7.1 Franchisor's Rights to Transfer.
Franchisor shall have the right, without the need for Area Developer's consent, to transfer or assign this Agreement and all or any part of its rights or obligations herein to any person or legal entity, provided that any designated assignee of Franchisor shall become solely responsible for all obligations of Franchisor under this Agreement from the date of assignment.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie has the right to transfer or assign the Area Development Agreement without needing the Area Developer's consent. However, the assignee must assume all of Face Foundrie's obligations under the agreement from the date of assignment forward. This means a new entity could take over Face Foundrie's responsibilities related to the Area Development Agreement.
This clause protects Face Foundrie, allowing it flexibility in its business operations, such as in the event of a merger, acquisition, or other restructuring. For the Area Developer, this means they must be prepared to work with a potentially different entity than they initially contracted with. It is important for the Area Developer to ensure that any assignee is financially stable and capable of fulfilling Face Foundrie's obligations under the agreement.
While Face Foundrie can transfer the agreement, the Area Developer faces restrictions on their ability to transfer the agreement. The Area Developer needs prior written consent from Face Foundrie to transfer any interest in the Area Developer entity or the rights and obligations under the Area Development Agreement. Face Foundrie will assess any proposed transfer based on conditions and requirements similar to those in the Franchise Agreement.