What is the amount of the Insurance Handling Fee currently charged by Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | of Fee Amount Due Date | Remarks (See Note 1) | ||
|---|---|---|---|---|
| pay us up to $500 per default per cure period until the default is cured to offset our expenses incurred to address the default. | ||||
| Unauthorized Advertising Fee | $500 per day of use of unauthorized advertising. | Upon demand. | This fee is payable to us if you use unauthorized advertising in violation of the terms of the Franchise Agreement. This is in addition to other remedies available to us. This may not be enforceable under state law. | |
| PROHIBITED PRODUCT, | i I complied of of offering I It incore | This fee is payable to us in the event that you offer or provide any unauthorized products or services from your Facial Bar, or use any unauthorized supplier. This in addition to other remedies available to us. This may not be enforceable under state law. | ||
| SERVICE, SUPPLIER FEE | ||||
| INSURANCE HANDLING | Currently $250. | Immediately after notice from us. | You only pay this fee to us if you fail to obtain or maintain insurance, and we obtain the insurance coverage for you. This fee does not include the cost of insurance |
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Insurance Handling Fee is currently $250. This fee is charged if a franchisee fails to obtain or maintain the required insurance coverage, and Face Foundrie obtains the insurance on their behalf.
It's important to note that the $250 fee is specifically for handling the insurance procurement. It does not include the cost of the insurance premiums themselves, which the franchisee is also responsible for reimbursing to Face Foundrie. This means that in addition to the $250 handling fee, a franchisee would also need to pay for the actual cost of the insurance coverage secured by Face Foundrie.
This type of fee is not uncommon in franchising, as franchisors often want to ensure that franchisees maintain adequate insurance coverage to protect the brand and the business. By charging a handling fee, Face Foundrie is covering its administrative costs associated with securing insurance for a non-compliant franchisee. Franchisees should ensure they maintain required insurance to avoid this additional cost.