Upon termination or expiration of the Face Foundrie Franchise Agreement, what is the franchisee required to immediately pay?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
hisee not to acquire a successor franchise for the Facial Bar.
- 15.04 Expiration. Any successor franchise shall be conditioned upon the satisfaction of the conditions set forth above in this Section. Upon the expiration of the Term, any renewal term will be governed by the New Agreements. If Franchisee fails to meet any of the conditions set forth this section 15, the franchise granted to Franchisee hereunder shall automatically expire at the end of the Term.
16. EFFECT OF TERMINATION OR EXPIRATION.
16.01 Payment of Amounts Owed. Within ten (10) days after the effective date of termination or expiration (without Franchisee's successful exercise of the right to acquire a successor franchise) of this Agreement, Franchisee must pay Franchisor and its Affiliates all amounts owed thereto, including, without limitation, unpaid Royalty Fees, Marketing Contributions, Technology Fees, amounts owed for purchases from Franchisor or its Affiliates, and all other amounts due to Franchisor or its Affiliates and interest and late fees
due on any of the foregoing. In the event of termination for any default of Franchisee, such sums shall include all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of the default and termination.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, within ten days of the termination or expiration of the Franchise Agreement, a franchisee must pay all outstanding amounts to Face Foundrie and its affiliates. This includes unpaid Royalty Fees, Marketing Contributions, Technology Fees, and amounts owed for any purchases made from Face Foundrie or its affiliates, along with any interest and late fees.
If the termination results from the franchisee's default, the franchisee is also responsible for covering all damages, costs, and expenses incurred by Face Foundrie. This includes reasonable attorney's fees associated with the default and subsequent termination.
Additionally, upon termination due to franchisee default, the franchisee must pay liquidated damages to Face Foundrie within ten days of termination. These damages are calculated based on the average monthly Royalty Fees, Marketing Contributions, Technology Fees, and other amounts paid or owed during the 12 months before termination. If the Facial Bar was not open for the entire 12-month period, Face Foundrie may use the average amount of such fees paid by franchisees in the System during such time period, or the Minimum Royalty, whichever is greater. This average is then multiplied by either 36 (representing three full years) or the number of months remaining in the franchise term, whichever is lower.