Does the Washington addendum modify all related agreements to the Face Foundrie franchise agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Washington addendum modifies the franchise agreement and all related agreements. The addendum becomes an integral part of and is incorporated into the Franchise Disclosure Document, the franchise agreement, and all related agreements, regardless of any conflicting information. This modification applies if the franchise offer is accepted in Washington, the purchaser resides in Washington, or the franchised business operates in Washington.
This addendum ensures that Face Foundrie's franchise operations within Washington comply with the state's specific legal requirements. For example, the Washington Franchise Investment Protection Act takes precedence in case of conflicting laws. The addendum also addresses franchisee rights, the site of arbitration, mediation, or litigation, and general releases, ensuring compliance with Washington law.
Furthermore, the addendum modifies provisions related to indemnification, attorney's fees, noncompetition covenants, and nonsolicitation agreements to align with Washington state law. For instance, noncompetition covenants are void and unenforceable against an employee of a franchisee unless their annualized earnings exceed $100,000, and against an independent contractor unless their earnings exceed $250,000 annually. These modifications protect franchisees and their employees and contractors from overly restrictive covenants.
In practical terms, this means a Face Foundrie franchisee in Washington will operate under a franchise agreement that is specifically tailored to comply with Washington law, providing additional protections and clarifying rights. Prospective franchisees should carefully review the Washington addendum to understand how it modifies the standard franchise agreement and what specific rights and obligations it creates under Washington law.