Can Face Foundrie designate itself or an affiliate as the exclusive supplier for certain items?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may designate at any time and for any reason, a single or multiple supplier(s) for equipment, machinery, vehicles, fixtures, furnishings, signs, décor, beauty and facial, eyebrow, and eyelash products and supplies, back bar and retail products, packaging, furnishings, uniforms, technology, and other products, supplies or services and require Franchisee to purchase exclusively from such designated supplier or suppliers, which exclusive designated supplier(s) may be Franchisor or an Affiliate of Franchisor.
If Franchisor designates itself as a supplier, Franchisor has the right to earn a profit on any items it supplies.
Franchisor and its Affiliates may receive payments, discounts or other consideration from suppliers in consideration of such suppliers' dealings with Franchisee and/or the System, and may use all amounts received by it without restriction.
Franchisor is not required to give Franchisee an accounting of supplier payments or to share the benefit of supplier payments with Franchisee or other System franchisees.
- (b) If Franchisee desires to purchase any equipment, machinery, vehicles, fixtures, furnishings, signs, décor, beauty and facial, eyebrow, and eyelash products and supplies, back bar and retail products, packaging, furnishings, uniforms, technology, and other products, supplies or services from suppliers other than those previously approved by Franchisor and such items have not been designated by Franchisor to be exclusively supplied by a designated supplier(s), Franchisee shall first submit to Franchisor a written request for authorization to purchase such items, together with such information and samples as Franchisor may require.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie has the authority to designate itself or an affiliate as the exclusive supplier for various items required to operate a franchise. This includes equipment, machinery, vehicles, fixtures, furnishings, signs, décor, beauty and facial products, eyebrow and eyelash products and supplies, back bar and retail products, packaging, uniforms, and technology.
This means that as a Face Foundrie franchisee, you may be required to purchase these items exclusively from Face Foundrie or one of its affiliated companies. Face Foundrie is entitled to make a profit on any items it supplies to its franchisees. Furthermore, Face Foundrie and its affiliates may receive payments, discounts, or other forms of consideration from approved suppliers based on the suppliers' dealings with franchisees or the Face Foundrie system.
Face Foundrie is not obligated to provide franchisees with an accounting of these supplier payments or share any benefits derived from them. If a franchisee wishes to purchase items from a supplier not already approved by Face Foundrie, they must submit a written request for authorization, along with any information or samples that Face Foundrie may require. Face Foundrie retains the right to refuse approval of any item or supplier that does not meet its standards or specifications.
This arrangement is fairly common in franchising, allowing franchisors to maintain quality control and brand consistency across all locations. However, it also means that franchisees may not have the flexibility to seek out the lowest prices or preferred vendors, potentially impacting their operating costs and profitability. Prospective franchisees should carefully consider these factors and discuss them with existing franchisees to fully understand the implications.