Under what circumstances is the Face Foundrie Area Developer Addendum signed?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS ADDENDUM (the "Addendum") is made and entered into by and between FACE FOUNDRIÉ FRANCHISING L.L.C., a Minnesota limited liability company ("Franchisor") with its principal business address at 6446 Flying Cloud Drive, Eden Prairie, Minnesota 55344, and , a ("Area Developer"), whose principal |
|---|
| business address is |
| 1. |
| BACKGROUND. |
| Franchisor and Area Developer are parties to that certain Area |
| Development |
| Agreement |
| dated |
| , |
| 20 |
| (the |
| "Area |
| Development |
| Agreement") that has been signed concurrently with the signing of this Addendum. This Addendum is annexed |
| to and forms part of the Area Development Agreement. This Addendum is being signed because (a) |
| any of |
| the offering or sales activity relating to the Area Development Agreement occurred in Minnesota and |
| the |
| Franchised Facial Bars |
| that Area Developer will |
| operate and develop under the Area Development Agreement |
| will be located in Minnesota, and/or (b) Area Developer is domiciled in Minnesota. |
| 2. |
| FORUM FOR LITIGATION. The following language is added to the end of Section 16.5 |
| of the Area Development Agreement: |
| NOTWITHSTANDING THE FOREGOING, MINN. STAT. SEC. 80C.21 AND MINN. |
| RULE 2860.4400J PROHIBIT FRANCHISOR, EXCEPT IN CERTAIN SPECIFIED |
| CASES, FROM REQUIRING LITIGATION TO BE CONDUCTED OUTSIDE OF |
| MINNESOTA. NOTHING IN THIS AGREEMENT WILL ABROGATE OR REDUCE |
| ANY OF AREA DEVELOPER'S RIGHTS UNDER MINNESOTA STATUTES |
| CHAPTER 80.C OR AREA DEVELOPER'S RIGHTS TO ANY PROCEDURE, FORUM |
| OR REMEDIES THAT THE LAWS OF THE JURISDICTION PROVIDE. |
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Area Developer Addendum is signed concurrently with the Area Development Agreement under specific conditions related to Minnesota. The addendum is required if any part of the offering or sales activity for the Area Development Agreement occurred in Minnesota, or if the Face Foundrie Facial Bars to be developed under the agreement will be located in Minnesota, or if the Area Developer is domiciled in Minnesota.
This addendum includes specific stipulations regarding legal proceedings. It clarifies that Minnesota law (specifically, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J) generally prohibits Face Foundrie from requiring litigation to occur outside of Minnesota, with certain exceptions. The addendum also affirms that the Area Developer retains all rights and remedies available under Minnesota law.
For a prospective Area Developer, this means that if they are based in Minnesota or plan to develop Face Foundrie locations there, they will be subject to additional legal considerations and protections under Minnesota's franchise laws. It is important for potential Area Developers to carefully review this addendum with legal counsel to fully understand their rights and obligations, particularly concerning dispute resolution and compliance with Minnesota state regulations.