Can Face Foundrie designate a single or multiple exclusive suppliers?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
viously approved as meeting our standards, specifications and requirements.
You may purchase these items from any supplier that meets our standards and specifications, unless we designate one or more exclusive suppliers for an item, in which case, you must purchase the item from such exclusive supplier(s). We may designate at any time and for any reason, a single or multiple suppliers for these items and require you to purchase exclusively from the designated supplier or suppliers, which exclusive designated supplier(s) may be us or an affiliate of ours. We may disapprove of products and suppliers based on our desire to consolidate System purchases through fewer suppliers.
As of the date of this Disclosure Document, we have 10 mandatory suppliers (other than us and our affiliates as described below) that you are required to use to purchase certain proprietary products and services prior to
commencing operations of your Facial Bar and on an ongoing basis. We do not expect to approve another source of supply for any of these items that we have described in this paragraph. You may not have the right to substitute any new supplier for these items, or to request us to appoint or approve any new supplier.
- (1) You must purchase from a mandatory vendor an array of skincare products and tools sold at retail and used in the operation of your Facial Bar (including Face Foundrié-branded items), which as of the date of this Disclosure Document includes collagen spritz, serums, moisturizers, facial cups and gua sha, other general facial tools, shopping bags and other branded collateral;
- (2) You must obtain your facial bar management software, which handles scheduling, appointment booking, inventory, and payments, from our mandatory vendor;
- (3) You must use our mandatory vendor for online accounting software;
- (4) You must use our mandatory vendor for a financial performance data reporting platform (the cost of which is included as part the Technology Fee you pay to us);
- (5) You must use our mandatory vendor for digital advertising agency services;
- (6) You must purchase architectural services from a vendor we require;
- (7) You must purchase millwork for your Facial Bar from a vendor we require;
- (8) You must purchase your branded exterior signage from a vendor we require;
- (9) You must purchase branded interior signage, along with brackets, from a vendor we require; and
- (10) You must purchase certain skin treatment machines from a vendor we require.
In addition, we currently have a sole approved vendor to provide direct mail services.
You must also adhere to our standards and specifications for the construction and design of the Facial Bar, which may include requirements for the interior and exterior layout, signage, fixtures and trade dress including the color scheme. We are free to modify any of our methods, standards, specifications and requirements at our discretion. These modifications will be communicated to you via our Operations Manual or otherwise in writing. We have no obligation to make available to prospective suppliers the standards and specifications that we deem confidential.
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, Face Foundrie has the authority to designate single or multiple exclusive suppliers for items used in the Facial Bar. This means that Face Foundrie franchisees may be required to purchase certain products, supplies, equipment, and other items exclusively from suppliers chosen by Face Foundrie. These designated suppliers can include Face Foundrie itself or its affiliates.
This requirement ensures uniformity and quality control throughout the Face Foundrie system. However, it also limits the franchisee's ability to shop around for the best prices or preferred products. As of the date of the 2025 Disclosure Document, Face Foundrie has 10 mandatory suppliers (other than Face Foundrie and its affiliates) that franchisees are required to use to purchase certain proprietary products and services prior to commencing operations and on an ongoing basis.
The FDD specifies that Face Foundrie may disapprove of products and suppliers based on a desire to consolidate System purchases through fewer suppliers. While franchisees can propose alternative suppliers, Face Foundrie is not required to approve them and may deny approval for any reason, including limiting the number of approved suppliers. The evaluation process for alternative suppliers involves the supplier providing financial and operational information and potentially undergoing facility inspections, with the franchisee or proposed supplier bearing the costs of evaluation, testing, and inspections, with a fee equal to the greater of $2,500 or the actual reasonable cost of any evaluation, testing, and inspections.
The FDD also indicates that required purchases from designated or approved suppliers represent a significant portion of a franchisee's costs, estimating approximately 80% to 90% of the total cost of establishing a Facial Bar and approximately 85% to 95% of the total cost of operating it. Face Foundrie also has the right to receive payments or other benefits like rebates, discounts and allowances from authorized suppliers based upon their dealings with franchisees, typically ranging from 2% to 10% of the purchases the franchisee makes from the vendor.