Under what circumstances must a Face Foundrie Area Developer designate a new Operating Partner?

According to Face Foundrie's 2025 Franchise Disclosure Document, an Area Developer must designate a new Operating Partner under specific circumstances. If the initially designated Operating Partner dies, becomes incapacitated, leaves the employment of the Area Developer, transfers their interest in the Area Developer entity, or otherwise ceases to supervise the development of the Franchised Facial Bars, the Area Developer is required to promptly designate a new Operating Partner, subject to Face Foundrie's reasonable approval.

This provision ensures that there is always a qualified individual overseeing the development and operation of Face Foundrie locations within the designated area. The Operating Partner plays a crucial role, as Face Foundrie relies on this person to have the responsibility and decision-making authority regarding the Area Developer's business and operations. This requirement helps maintain consistency and quality in the development and operation of Face Foundrie franchises.

For a prospective Area Developer, this means that they need to have a succession plan in place for the Operating Partner role. If the original Operating Partner becomes unable to fulfill their duties, the Area Developer must act quickly to find a suitable replacement who meets Face Foundrie's approval. This could involve identifying potential candidates within their organization or recruiting someone from outside. The Area Developer should also ensure that any potential Operating Partner owns at least twenty percent (20%) of the Area Developer entity, as stated in Section 5.2.