factual

What administrative expenses are excluded from Face Foundrie's labor costs?

Face_Foundrie Franchise · 2025 FDD

Answer from 2025 FDD Document

The labor costs include payroll and professional fees.

These figures do not include salary for the owner, but do include the salary for a Salon Manager.

These figures also do not include a management fee paid to our affiliate for certain administrative expenses, as that is an expense that would not apply to the operation of a franchised Facial Bar.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 59–69)

What This Means (2025 FDD)

According to Face Foundrie's 2025 Franchise Disclosure Document, the labor costs for the corporate Facial Bars do not include the owner's salary. However, the labor costs do include the salary for a Salon Manager. Additionally, the figures do not include a management fee paid to Face Foundrie's affiliate for certain administrative expenses. The FDD specifies that this management fee is excluded because it would not apply to the operation of a franchised Face Foundrie location.

For a prospective franchisee, this means that when evaluating the provided financial performance data, they should account for the fact that the owner's salary is not included in the labor costs presented. A franchisee will need to factor in their own salary or draw when projecting their potential earnings. The inclusion of a Salon Manager's salary provides a more realistic view of staffing costs, assuming the franchisee intends to hire a manager.

The exclusion of the management fee paid to Face Foundrie's affiliate is significant. This fee likely covers services such as accounting, human resources, or marketing support provided at the corporate level. As a franchisee, you would not be subject to this specific fee, but you would need to budget for these administrative functions, either by handling them yourself, hiring staff, or outsourcing to third-party providers. Understanding the scope of services covered by the excluded management fee can help a franchisee better estimate these costs.

It is important for potential Face Foundrie franchisees to conduct their own due diligence and create detailed financial projections. While the FDD provides historical data from corporate locations, a franchisee's actual costs may vary based on factors such as location, staffing levels, and local market conditions. Consulting with a financial advisor and experienced franchise consultant is recommended to develop a comprehensive business plan.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.