Besides the minimum, what other expenses can Face Foundrie charge as part of the transfer fee?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
is Agreement and its ancillary documents in all respects, and the terms of which may differ from the terms of this Agreement including, without limitation, higher and/or additional fees;
- (d) The transferee (and, if the transferee is not an individual, the Operating Partner), shall, at the transferee's expense, successfully attend and successfully complete any training programs then in effect for operators upon such terms and conditions as Franchisor may reasonably require;
- (e) Franchisee or the proposed transferee must pay Franchisor a transfer fee equal to the greater of (i) Ten Thousand Dollars ($10,000), or (ii) reimbursement for all legal, accounting, training and other expenses incurred by Franchisor in connection with the Transfer;
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the transfer fee is the greater of $10,000 or the reimbursement for all legal, accounting, training, and other expenses incurred by Face Foundrie in connection with the transfer. This means that while there is a minimum transfer fee of $10,000, the actual fee could be higher if Face Foundrie's expenses related to the transfer exceed that amount.
For a prospective Face Foundrie franchisee, this implies that the cost of transferring a franchise can be variable and potentially significant, depending on the complexity and the amount of work Face Foundrie needs to undertake to approve the transfer. The franchisee will need to factor in potential legal, accounting, and training costs on top of the minimum fee. It is important to note that the transferee may also need to cover the costs of any training programs in effect for operators at their own expense.
This type of transfer fee structure is fairly common in franchising, as it aims to protect the franchisor from incurring losses due to the transfer process. However, the open-ended nature of the "other expenses" component means that a transferring Face Foundrie franchisee should seek clarity from Face Foundrie regarding what specific expenses are likely to be included in the transfer fee calculation to better estimate the total cost.
Additionally, the FDD states that if requested by Face Foundrie, the franchisee, at its expense, must upgrade the Facial Bar and all equipment to conform to the then-current standards for new Face Foundrie locations. This could add a significant expense to the transfer, depending on the extent of the required upgrades.