Under what grounds can a Face Foundrie franchisee terminate the franchise agreement?

According to Face Foundrie's 2025 Franchise Disclosure Document, a franchisee can terminate the franchise agreement based on any grounds permitted under state law. This means the specific reasons and conditions for termination will vary depending on the state in which the franchise operates. Prospective franchisees should consult with legal counsel to understand their rights and obligations regarding termination in their specific state.

Additionally, the FDD includes state-specific addenda for California, Virginia, Washington, Minnesota, Maryland, and South Dakota, which modify certain provisions of the franchise agreement to comply with those states' franchise laws. These addenda address issues such as waivers, disclaimers, and the franchisor's right to cancel the franchise. For example, Virginia law states it is unlawful for a franchisor to cancel a franchise without reasonable cause, and any termination grounds in the agreement that do not constitute "reasonable cause" under Virginia law may not be enforceable.

Furthermore, the Franchise Agreement provides for termination upon the franchisee's bankruptcy. However, the FDD notes that this provision might not be enforceable under federal bankruptcy law, but Face Foundrie will enforce it to the extent enforceable. This highlights the importance of understanding both state and federal laws regarding franchise agreements and termination rights. Prospective franchisees should carefully review the entire Item 17 in the FDD, including all state-specific addenda, and seek legal advice to fully understand their termination rights and obligations.