Can Face Foundrie charge the marketing fund for administrative costs?

According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie has the right to charge the marketing fund for reasonable administrative costs and overhead. These costs must be related to the direction and implementation of the fund and advertising programs for franchisees and the Face Foundrie system. Examples of expenses that can be charged to the fund include accounting costs, salaries, and costs of Face Foundrie personnel for creating and implementing advertising, merchandising, promotional, and marketing programs, as well as associated overhead.

This means that Face Foundrie franchisees will contribute to a marketing fund that is used to promote the brand and the system as a whole. A portion of these contributions may be used by Face Foundrie to cover the administrative expenses they incur while managing the fund. While the FDD states that the fund will not otherwise benefit Face Foundrie, it is important for prospective franchisees to understand that Face Foundrie can use the fund to offset some of their internal costs related to marketing and advertising efforts.

Face Foundrie maintains separate bookkeeping accounts for the fund, and the fund itself is not considered an asset of Face Foundrie. An annual unaudited statement of the fund's earnings and expenditures will be made available to franchisees within 60 days of the fiscal year end upon written request. While Face Foundrie is not obligated to have the fund audited, franchisees have the right to request and review the annual statement to understand how the marketing funds are being utilized, including the portion allocated to administrative costs.