Can Face Foundrie or its affiliates be designated as exclusive suppliers?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
You may purchase these items from any supplier that meets our standards and specifications, unless we designate one or more exclusive suppliers for an item, in which case, you must purchase the item from such exclusive supplier(s). We may designate at any time and for any reason, a single or multiple suppliers for these items and require you to purchase exclusively from the designated supplier or suppliers, which exclusive designated supplier(s) may be us or an affiliate of ours. We may disapprove of products and suppliers based on our desire to consolidate System purchases through fewer suppliers.
As of the date of this Disclosure Document, we have 10 mandatory suppliers (other than us and our affiliates as described below) that you are required to use to purchase certain proprietary products and services prior to
commencing operations of your Facial Bar and on an ongoing basis. We do not expect to approve another source of supply for any of these items that we have described in this paragraph. You may not have the right to substitute any new supplier for these items, or to request us to appoint or approve any new supplier.
- (1) You must purchase from a mandatory vendor an array of skincare products and tools sold at retail and used in the operation of your Facial Bar (including Face Foundrié-branded items), which as of the date of this Disclosure Document includes collagen spritz, serums, moisturizers, facial cups and gua sha, other general facial tools, shopping bags and other branded collateral;
- (2) You must obtain your facial bar management software, which handles scheduling, appointment booking, inventory, and payments, from our mandatory vendor;
- (3) You must use our mandatory vendor for online accounting software;
- (4) You must use our mandatory vendor for a financial performance data reporting platform (the cost of which is included as part the Technology Fee you pay to us);
- (5) You must use our mandatory vendor for digital advertising agency services;
- (6) You must purchase architectural services from a vendor we require;
- (7) You must purchase millwork for your Facial Bar from a vendor we require;
- (8) You must purchase your branded exterior signage from a vendor we require;
- (9) You must purchase branded interior signage, along with brackets, from a vendor we require; and
- (10) You must purchase certain skin treatment machines from a vendor we require.
In addition, we currently have a sole approved vendor to provide direct mail services.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–31)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie retains the right to designate itself or its affiliates as the sole supplier of certain items. In such cases, franchisees would be required to purchase those items directly from Face Foundrie or its affiliate at their current prices. Face Foundrie may charge a reasonable mark-up, surcharge, and handling fee on these purchases, which will include a profit for Face Foundrie. As of the date of the 2025 FDD, an affiliate of Face Foundrie is the sole source for certain optional products in the Initial Opening Package.
To maintain uniformity and quality within the Face Foundrie system, franchisees are generally required to purchase products, supplies, equipment, and other items from approved suppliers. Face Foundrie may designate single or multiple exclusive suppliers for these items, requiring franchisees to purchase exclusively from them. Face Foundrie can make these designations at any time and for any reason, and these exclusive suppliers may include Face Foundrie itself or its affiliates.
As of the date of the 2025 Disclosure Document, Face Foundrie has 10 mandatory suppliers (other than Face Foundrie and its affiliates) that franchisees must use to purchase certain proprietary products and services both before commencing operations and on an ongoing basis. These mandatory vendors include suppliers for skincare products and tools, facial bar management software, online accounting software, a financial performance data reporting platform, digital advertising agency services, architectural services, millwork, branded exterior signage, branded interior signage, and skin treatment machines. Face Foundrie does not anticipate approving alternative suppliers for these items, and franchisees may not have the right to substitute new suppliers or request the appointment of new suppliers. In addition, Face Foundrie currently has a sole approved vendor to provide direct mail services.