Under what circumstances should the Franchisee Acknowledgement document NOT be signed for a Face Foundrie franchise?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS DOCUMENT SHALL NOT BE SIGNED BY YOU, AND WILL NOT APPLY, IF THE OFFER OR SALE OF THE FRANCHISE IS SUBJECT TO THE STATE FRANCHISE REGISTRATION/DISCLOSURE LAWS IN THE STATES OF CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
DO NOT SIGN THE ACKNOWLEDGEMENT IF THE FRANCHISE IS TO BE OPERATED IN, OR YOU ARE A RESIDENT OF, MARYLAND.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Franchisee Acknowledgement document should not be signed if the offer or sale of the franchise is subject to state franchise registration/disclosure laws in certain states. These states include California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
Specifically, the document states that it will not apply if the franchise is subject to these state laws. Additionally, the document explicitly instructs potential franchisees not to sign the acknowledgement if the franchise is to be operated in, or if they are a resident of, Maryland.
This instruction is crucial for prospective franchisees because signing the acknowledgement under the specified circumstances could potentially waive certain rights or protections afforded to them under state franchise laws. Franchisees should carefully review this instruction and ensure they comply with it based on their location and the applicable state laws.