Does Face Foundrie anticipate all franchisees will contribute to the marketing fund?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
We anticipate all of our franchisees will contribute to the Fund, although there is no prohibition against us charging higher or lower rates for future franchisees. We may, at any time, defer or reduce a franchise owner's Marketing Contributions and, upon written notice to you, reduce or suspend Marketing Contributions and operations for one or more periods of any length and terminate (and, if terminated, reinstate) the Fund. If we terminate the Fund, we will either spend all monies in the Fund for advertising or promotional purposes, or distribute all unspent monies to franchise owners, and to us and our affiliates, in proportion to their, and our, respective contributions during the preceding twelve-month period.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 33–43)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie anticipates that all franchisees will contribute to the marketing fund. However, Face Foundrie retains the right to charge higher or lower rates for future franchisees. Face Foundrie may also defer or reduce a franchisee's marketing contributions or even suspend the fund entirely, providing written notice to the franchisee.
The marketing fund is used for brand development and to increase public recognition and acceptance of the Face Foundrie system. The funds are used for various marketing activities, including media campaigns, consumer research, public relations, trade show participation, website and social media development, and promotional materials. Face Foundrie has the sole right to make decisions about the marketing programs, materials, and media used, as well as the allocation of the funds.
Franchisees are required to contribute 3% of their gross sales to the marketing fund. These contributions are kept in a separate account from Face Foundrie's general funds. While Face Foundrie manages the fund, they do not have a fiduciary obligation to franchisees in administering it. An unaudited statement of the fund's earnings and expenditures is prepared annually and made available to franchisees upon written request within 60 days of Face Foundrie's fiscal year end.