When is the Face Foundrie Development Fee payable, and is it refundable?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
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Area Development Fee
We offer Area Development Agreements for you to develop multiple (two or more) Facial Bars. The development fees you pay when you sign an Area Development Agreement will vary depending on the number of Facial Bars you commit to open. If you choose to enter into an Area Development Agreement, you must pay a development fee ("Development Fee") equal to $40,000 multiplied by the number of Facial Bars you
agree to open under our form of Area Development Agreement. You will not pay an additional Initial Franchise Fee for any of the Facial Bars we require you to develop under the Area Development Agreement. All portions of the Development Fee are payable in full when you sign the Area Development Agreement and are nonrefundable. In our last fiscal year, our Development Fee was uniformly $36,000 multiplied by the number of Facial Bars to be developed under an Area Development Agreement, which was our then-current Development Fee, except that we allowed one existing area d
Source: Item 5 — INITIAL FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Development Fee is payable in full when you sign the Area Development Agreement. This fee is nonrefundable. The Development Fee is calculated by multiplying $40,000 by the number of Facial Bars the franchisee commits to open under the Area Development Agreement.
For prospective franchisees considering an Area Development Agreement with Face Foundrie, it's crucial to understand that this substantial fee is due upfront and is nonrefundable. This means that upon signing the agreement, the franchisee is obligated to pay the entire Development Fee, and under no circumstances will they receive a refund, even if they are unable to open all the committed Facial Bars.
This policy is fairly standard in the franchise industry, as development fees are intended to compensate the franchisor for granting exclusive development rights and investing resources in supporting the area developer. However, the nonrefundable nature of the fee underscores the importance of careful planning and due diligence before entering into an Area Development Agreement with Face Foundrie. Franchisees should thoroughly assess their financial capabilities and market potential to ensure they can fulfill their development obligations.
In Face Foundrie's last fiscal year, the Development Fee was uniformly $36,000 multiplied by the number of Facial Bars to be developed under an Area Development Agreement. However, one existing area developer was allowed to purchase additional units for $32,500 each.