What costs are associated with the Face Foundrie gift card program for franchisees?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
You must participate in all gift certificate, gift card, loyalty, and rewards programs sponsored at any time by us. Your costs associated with the gift card program include your responsibility to pay swipe fees on any gift cards purchased with credit cards, costs of the gift cards, periodic promotions to encourage gift card sales (which may include providing vouchers for free products and services in exchange for gift card sales meeting designated thresholds), and your obligation to give away product and services based on rewards your customers acquire and redeem.
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, franchisees are required to participate in all gift card programs sponsored by the company. The costs associated with the gift card program include swipe fees on gift cards purchased with credit cards, the cost of the gift cards themselves, and the expense of periodic promotions to encourage gift card sales. These promotions may involve providing vouchers for free products and services when gift card sales meet certain thresholds.
Additionally, Face Foundrie franchisees are obligated to provide products and services based on rewards that customers acquire and redeem through the loyalty program. This means franchisees must factor in the cost of these free or discounted services when managing their finances.
In summary, the gift card program involves multiple potential costs for Face Foundrie franchisees, including direct costs like swipe fees and gift card purchases, as well as indirect costs related to promotions and reward redemptions. Franchisees should carefully consider these expenses when evaluating the financial implications of operating a Face Foundrie franchise.