Under what conditions can Face Foundrie's franchisor withhold consent for a transfer?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.02 Conditions for Approval. If Franchisor has not exercised its right of first refusal under Section 13.05, Franchisor will not unreasonably withhold its approval of a Transfer that meets all of the reasonable restrictions, requirements and conditions Franchisor may impose on the Transfer, the transferor(s) and/or the transferee(s), including the following:
- (a) Franchisee and its Owners and Affiliates must be in compliance with the provisions of this Agreement and all other agreements with Franchisor or any of its Affiliates and have paid all outstanding amounts owed thereto, as well as to the approved suppliers to the System;
- (b) The transferee shall demonstrate to Franchisor's satisfaction that the terms of the proposed transfer do not place an unreasonable financial or operational burden on the transferee, and that the transferee (or, if the transferee is other than an
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie will not unreasonably withhold consent to a transfer if the requirements of Section 13.02 have been satisfied. However, Face Foundrie may impose reasonable restrictions, requirements, and conditions on the transfer, the transferor(s), and/or the transferee(s).
Face Foundrie can withhold approval if the franchisee, its owners, and affiliates are not in compliance with the provisions of the Franchise Agreement or any other agreements with Face Foundrie or its affiliates. This includes failure to pay all outstanding amounts owed to Face Foundrie, its affiliates, and approved suppliers to the Face Foundrie system.
Additionally, Face Foundrie can withhold approval if the transferee does not demonstrate that the terms of the proposed transfer do not place an unreasonable financial or operational burden on the transferee, or if the transferee (or its owners) does not have the character, business experience, and financial resources necessary to meet the obligations of the franchisee. Face Foundrie can also withhold consent if the transferee does not execute agreements to be bound by the terms of the Franchise Agreement and guarantee the transferee's obligations.