Can Face Foundrie use trademarks not designated as 'Marks' for other franchise systems?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) develop, use and franchise anywhere (including within the Protected Territory) the rights to any trade names, trademarks, service marks, commercial symbols, logos, emblems, signs, slogans, insignia, patents or copyrights not designated by Franchisor as Marks, for use with similar or different franchise systems for the sale of similar or different products or services than those constituting a part of the System, without granting Franchisee any rights therein;
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie retains specific rights regarding trademarks and franchise systems. Face Foundrie can develop, use, and franchise trade names, trademarks, service marks, commercial symbols, logos, emblems, signs, slogans, insignia, patents, or copyrights not designated as 'Marks.'
This means Face Foundrie has the freedom to create and franchise other systems, even within a franchisee's protected territory, using different branding elements than the 'Marks' associated with the core Face Foundrie Facial Bar concept. These other systems can offer similar or different products/services without granting the franchisee any rights to those new trademarks or systems.
For a prospective Face Foundrie franchisee, this clause highlights a potential risk. Face Foundrie could introduce competing or complementary businesses under different brands, which could operate nearby or even within the franchisee's protected territory, as long as they don't use the designated 'Marks.' It is important for a franchisee to understand that their protected territory only applies to other Face Foundrie Facial Bars operating under the same brand and 'Marks.'
This reservation of rights is fairly common in franchising, allowing franchisors to diversify and expand into new markets or services. However, franchisees should carefully consider the potential impact of such activities on their business and discuss these possibilities with Face Foundrie before signing the agreement.