How does Face Foundrie's assistance with advertising (Item 11) relate to the franchisee's obligations regarding community involvement and public relations (Item 9)?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
(a) We (or our designee) will direct all advertising programs, with the sole right to decide the concepts, materials, and media used in these programs and the placement and allocation of the programs, and retain sole discretion over the operation and advertising decisions of the Fund. The Fund is for brand development initiatives and programs intended to maximize
general public recognition, acceptance, and use of the System. Neither we nor our designee will be obligated to make expenditures for you that are equivalent or proportionate to your Marketing Contributions, or to make sure that you or any particular franchisee benefits directly or pro rata from expenditures by the Fund, or to spend any amounts in any particular geographic area. Any Facial Bar owned or operated by us or our affiliates will contribute to the Fund in the same manner as similarly situated franchisees. We may use outside advisors and agencies for advertising, marketing, public relations, Website and social media programs (and other successor technology platforms), and Marketing Contributions may be used to pay all advisor and agency fees and/or offset administrative costs of managing the Fund.
- (b) The Fund, and all contributions to and earnings from the Fund, will be used exclusively to meet the costs of marketing and any other activities that we believe will enhance the System's image and, in our sole discretion, promote general public awareness of and favorable support for the System.
This includes the costs (including, without limitation, reasonable salaries and overhead incurred by us) of creating, preparing, administering, directing, and conducting media marketing campaigns and System advertising, marketing and sales programs and campaigns; consumer research and marketing surveys designed to assist in maintaining high quality standards; public relations activities; trade show participation (including travel and expenses for our staff); the development and operation of a national and regional accounts program; online directory listings; developing, enhancing, and maintaining our Website and other Internet marketing, as well as social media and other digital applications (and other successor technology platforms); sponsorship of organizations and events; purchasing promotional items and advertising materials; out-of-pocket expenses (including printing, postage, shipping, telephone and photocopying); our allocable overhead and administrative costs (including compensation and expenses of employees relating to the Fund); and providing promotional and other marketing materials and services to the Facial Bars operating under the System.
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie provides assistance with advertising through a System Marketing Fund, and franchisees are obligated to participate in advertising as outlined in Item 9. Face Foundrie directs all advertising programs and has the sole right to make decisions regarding concepts, materials, and media used. The aim is to maximize public recognition and acceptance of the Face Foundrie system. The franchisor is not obligated to ensure that advertising expenditures are equivalent or proportionate to a franchisee's contributions or that any franchisee benefits directly or pro rata from these expenditures.
The Marketing Fund is used exclusively for marketing costs and activities that Face Foundrie believes will enhance the system's image and promote public awareness and support. These activities include media marketing campaigns, consumer research, public relations, trade show participation, online directory listings, website and internet marketing, social media, sponsorships, and the purchase of promotional items. Franchisees are required to comply with standards and policies, including those related to marketing and advertising, as specified in the Franchise Agreement and Operating Manuals.
Face Foundrie may use outside advisors and agencies for advertising, marketing, public relations, website, and social media programs, and the Marketing Contributions may be used to pay advisor and agency fees or offset administrative costs of managing the Fund. While franchisees are obligated to participate in advertising, Face Foundrie retains control over the advertising programs and the use of the Marketing Fund. Franchisees should be aware that they do not have direct control over how the fund is spent and may not see direct benefits proportionate to their contributions.