What criteria must suppliers meet to be approved by Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
s attached as Exhibit G to the Franchise Agreement.
Approval of Alternative Suppliers
Except for products and services that are available from a single source, if you wish to purchase any item from a supplier we have not previously approved or an item that does not comply with our standards and specifications, you must first submit to us a written request for approval. We will require the proposed supplier to provide us with certain financial and operational information and other information regarding the supplier and the items to be approved. In addition, the proposed supplier must permit our representatives to inspect its facilities (e.g. business offices and/or manufacturing facilities, as applicable). We reserve the right, at our option, and at the proposed supplier's expense, to inspect or re-inspect the facilities, equipment, and raw materials of any supplier, at any time. Before we approve a supplier, we will evaluate the economic terms of a possible relationship and ensure that the proposed supplier meets our requirements. When approving suppliers, we consider whether they demonstrate the ability to meet our standards and specifications, and whether they possess adequate quality controls and capacity to supply your needs promptly and reliably. We will make our criteria available to you upon your request.
The proposed supplier or you must pay, in advance, a fee equal to the greater of $2,500 or the actual reasonable cost of any evaluation, testing, and inspections we undertake, the actual amount of which will depend on the evaluation, testing and inspections necessary to test such supplier's products. Within a reasonable time frame after we receive the completed request and after we complete any evaluation and inspection or testing (approximately 45 days), we will notify you in writing of our approval or disapproval of the proposed supplier or item. Generally, we will respond to your requests for supplier approval within a reasonable time period not
to exceed 90 days. We are not required to approve any supplier or item not meeting our standards and specifications. We may deny approval for any reason, including our determination to limit the number of approved suppliers. You must not use, offer for sale or sell any of the proposed supplier's products or any other product that does not meet our standards or specifications until you receive our written approval of the proposed supplier or item.
We may revoke our approval of particular goods or services, or of the supplier that supplies them, if we determine, in our sole discretion, that they no longer meet our standards or specifications. If you receive a written notice of revocation from us, you must stop selling disapproved products and/or stop purchasing from the disapproved supplier.
ITEM 9. FRANCHISEE'S OBLIGATIONS
This table lists your principal obligations under the franchise and other agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this Disclosure Document.
| Obligation | Section or Exhibit in | Section or Exhibit in | Disclosure | |
|---|---|---|---|---|
| Franchise Agreement | Development Agreement | Document Item | ||
| a. Site selection and | Section 3 and Exhibit G | 3.2 and 3.3 | Items 7, 11 and 12 | |
| acquisition/lease | ||||
| b. Pre-opening purchases/leases | Sections 4.01 and 9.02 | 3.2 and 3.3 | Items 7 and 8 | |
| c. Site development and other | Sections 3 and 9.02 | 3 | Items 6, 7, 8 and 11 | |
| pre-opening requirements | ||||
| d. Initial and ongoing training | Section 4 | Not Applicable | Items 7, 11 and 15 | |
| e. Opening | Sections 3, 4.01, 4.07, 10.01, and 14.02 | 1.1, 3.1, 3.2, 3.4.4 and Exhibit A | Items 6, 7 and 11 | |
| f. |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–31)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, if a franchisee wishes to purchase items from a supplier not previously approved, they must submit a written request for approval. Face Foundrie will then require the proposed supplier to provide financial and operational information, as well as other relevant details. Representatives from Face Foundrie have the right to inspect the supplier's facilities, including business offices and manufacturing sites. The supplier bears the expense for these inspections or reinspections. Face Foundrie will evaluate the economic terms of the potential relationship and ensure the supplier meets their requirements.
When evaluating suppliers, Face Foundrie considers whether they can meet the brand's standards and specifications. They also assess whether the supplier has adequate quality controls and the capacity to reliably and promptly meet the franchisee's needs. Face Foundrie will make their specific criteria available to franchisees upon request. The proposed supplier or the franchisee must pay a fee in advance, which is the greater of $2,500 or the actual reasonable cost of any evaluation, testing, and inspections undertaken by Face Foundrie.
Face Foundrie aims to respond to requests for supplier approval within approximately 45 to 90 days after receiving the completed request and finishing any necessary evaluations, inspections, or testing. However, Face Foundrie is not obligated to approve any supplier or item that does not meet their standards and specifications and may deny approval for any reason, including limiting the number of approved suppliers. Face Foundrie retains the right to revoke approval of particular goods, services, or suppliers if they no longer meet the brand's standards or specifications. If a franchisee receives a written notice of revocation, they must stop selling the disapproved products and stop purchasing from the disapproved supplier.
It is important to note that Face Foundrie has the right to receive payments or other benefits like rebates, discounts, and allowances from authorized suppliers based on their dealings with franchisees. These payments can range from 2% to 10% of the franchisee's purchases from the vendor. Face Foundrie may also receive payments from a supplier as a condition of approving that supplier. This practice is common in franchising, where franchisors often negotiate with suppliers to receive volume discounts or rebates based on the collective purchasing power of their franchisees.