Under what circumstances can Face Foundrie terminate the Area Developer Agreement with notice but without an opportunity to cure?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
6.2 Termination Upon Notice*.* Area Developer shall be deemed to be in default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder or take any of the actions described in Section 6.5 below, without affording Area Developer any opportunity to cure the default, effective immediately upon the provision of notice to Area Developer (in the manner provided under Section 10 hereof), upon the occurrence of any of the following events of default:
6.2.1 If the Franchise Agreement for any Franchised Facial Bar operated by Area Developer (or an entity affiliated with Area Developer) is terminated.
6.2.2 If Area Developer or any Principal is convicted of a felony, a crime involving moral turpitude, or any other crime or action that Franchisor believes is reasonably likely to have an adverse effect on the System, the Marks, the goodwill associated therewith, or Franchisor's interest therein.
6.2.3 If Area Developer or any Principal purports to transfer any rights or obligations under this Agreement or any the assets of Area Developer in a manner that is contrary to the terms of Section 7 of this Agreement.
6.2.4 If any Franchised Facial Bar operated by Area Developer (or an entity affiliated with Area Developer) is abandoned, or ceases to operate for more than two (2) consecutive days, or five (5) individual days in any twelve (12) month period, without Franchisor's prior written consent.
6.2.5 If Area Developer misuses or makes any unauthorized use of the Marks or any other identifying characteristics of the System.
6.2.6 If Area Developer breaches any material provision of this Agreement which breach is not susceptible to cure.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie can terminate the Area Developer Agreement with notice but without an opportunity to cure under specific circumstances. These circumstances include if the Franchise Agreement for any Franchised Facial Bar operated by the Area Developer (or an entity affiliated with them) is terminated. This means that if the Area Developer loses the right to operate one of their existing Face Foundrie locations, the entire Area Developer Agreement can be terminated immediately by Face Foundrie.
Additional reasons for immediate termination include if the Area Developer or any Principal is convicted of a felony, a crime involving moral turpitude, or any other crime or action that Face Foundrie believes is reasonably likely to have an adverse effect on the System, the Marks, the goodwill associated therewith, or Face Foundrie's interest therein. This clause gives Face Foundrie broad discretion to terminate the agreement based on criminal activity or actions they deem harmful to the brand. Furthermore, Face Foundrie can terminate the agreement if the Area Developer attempts to transfer any rights or obligations under the agreement or any assets of the Area Developer in a manner that violates the terms of the agreement.
Further reasons for termination without opportunity to cure include if any Franchised Facial Bar operated by the Area Developer is abandoned or ceases to operate for more than two consecutive days, or five individual days in any twelve-month period, without Face Foundrie's prior written consent. This highlights the importance of maintaining consistent operation of the Face Foundrie locations. The agreement can also be terminated if the Area Developer misuses or makes any unauthorized use of the Marks or any other identifying characteristics of the System. Finally, Face Foundrie can terminate the agreement if the Area Developer breaches any material provision of the agreement which breach is not susceptible to cure, meaning that if a breach is so severe that it cannot be fixed, Face Foundrie can immediately terminate the agreement.