Under what conditions is the Addendum to the Face Foundrie Franchise Agreement being 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 ("Franchisee"), whose principal |
| business address is |
| 1. |
| BACKGROUND. Franchisor and Franchisee are parties to that certain Franchise Agreement |
| dated, 20 (the "Franchise Agreement"). This Addendum is annexed to |
| and forms part of the Franchise Agreement. This Addendum is being signed because |
| (a) the Facial Bar that |
| Franchisee will operate under the Franchise Agreement will be located in Maryland; and/or (b) any of the |
| offering or sales activity relating to the Franchise Agreement occurred in Maryland. |
| 2. |
| RELEASES. The following is added to the end of Sections 13.02 and 15.03 of the Franchise |
| Agreement: |
| Any release required as a condition of renewal, sale and/or assignment/transfer will not apply |
| to |
| any claims or liability arising under the Maryland Franchise Registration and Disclosure |
| Law. |
| 3. |
| INSOLVENCY. |
| The following sentence is added to the end of Section 14.02 |
| of the |
| Franchise Agreement: |
| Section 14.02 may not be enforceable under federal bankruptcy law (11 U.S.C. Sections 101 |
| et seq.). |
| 4. |
| FORUM FOR LITIGATION. The following language is added to the end of Section 18.04 |
| of the Franchise Agreement: |
| Franchisee may bring an action in Maryland for claims arising under the Maryland Franchise |
| Registration and Disclosure Law. |
| 5. |
| GOVERNING LAW. The following statement is added at the end of Section 19.04 of the |
| Franchise Agreement: |
| Notwithstanding the foregoing, the Maryland Franchise Registration and Disclosure Law shall |
| govern any claim arising under that law. |
| 6. |
| LIMITATION OF CLAIMS. The following is added to the end of Section |
| 18.06 of the |
| Franchise Agreement: |
| Franchisee must bring any claims arising under the Maryland Franchise |
| Registration and Disclosure Law within three years after Franchisor grants Franchisee |
| the franchise. |
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Addendum to the Franchise Agreement is signed under specific conditions related to the location and sales activities of the franchise. The Addendum is annexed to and forms part of the Franchise Agreement.
Specifically, if the Facial Bar will be located in Maryland, or if any offering or sales activity relating to the Franchise Agreement occurred in Maryland, the addendum is signed. Similarly, if the franchisee is a resident of New York and the Facial Bar will be located or operated in New York, or if any offering or sales activity occurred in New York, the addendum is signed. An addendum is also signed if the Facial Bar will be located in Minnesota, or if any of the offering or sales activity relating to the Franchise Agreement occurred in Minnesota.
These addenda modify certain sections of the standard Franchise Agreement to comply with specific state laws, such as the Maryland Franchise Registration and Disclosure Law, the New York State General Business Law, and Minnesota Statutes. The modifications address issues like releases, termination rights, forum for litigation, governing law, and limitations of claims, ensuring that the franchisee's rights are protected under the laws of the state in which they operate.