Are the expenditures paid to Face Foundrie or its affiliates refundable?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Paid | ||
|---|---|---|---|---|---|---|
| Low | ||||||
| Background Check Fee(1) | $200 | $600 | Lump Sum | Upon applying to be a franchisee, after the 14- day waiting period | Us or our background check provider | |
| Initial Franchise Fee | $50,000 | $50,000 | Lump Sum | Upon Signing Franchise Agreement | Us | |
| Accounting | $500 | $500 | As | As | Us | |
| System Set-Up Fee | Arranged | Arranged | ||||
| Rent and Security | $9,100 | $32,000 | As | As | Landlord | |
| Deposit(2) | Arranged | Arranged | ||||
| Leasehold | $45,000 | $233,000 | As | Before | Landlord, | |
| Improvements(3) | Arranged | Opening | Contractors | |||
| Furniture, Fixtures | $57,100 | $86,000 | As | Before | Approved | |
| and Equipment(4) | Arranged | Opening | Suppliers | |||
| Initial Opening Package(5) | $48,000 | $59,100 | As Arranged | Before Opening | Us and Approved Suppliers | |
| Initial Technology | $9,000 | $11,500 | As | Before | Approved | |
| Expenses(6) | Incurred | Opening | Suppliers | |||
| Signage(7) | $9,000 | $15,000 | As Incurred | Before Opening | Approved Suppliers | |
| Initial Training | $16,500 | $26,900 | As | Before | Third | |
| Expenses(8) | Incurred | Opening | Parties | |||
| Grand Opening | $25,000 | $60,000 | As | As Incurred | Third | |
| Advertising(9) | Incurred | Parties | ||||
| Licenses and | $1,800 | $4,600 | Before | Before | Government | |
| Permits | Opening | Opening | Agencies | |||
| Type of Expenditure | Amount Low | Method of Payment | When Due | To Whom Payment is to be Paid | ||
| Professional Fees | $6,500 | $29,500 | As Incurred | As Incurred | Third Party Architects, Lawyers, Accountants | |
| Insurance(10) | $1,000 | $3,350 | As Agreed | As Incurred | Insurance Companies | |
| Supplies | $500 | $1,300 | As Incurred | As Incurred | Third Parties | |
| Miscellaneous | $1,500 | $4,000 | As Incurred | As Incurred | Third Parties | |
| Extension Fee | $0 | $2,500 | As Incurred | Only due if requesting an extension to your required opening date | Us | |
| Additional Funds | $71,200 | $79,000 | As Agreed | As Incurred | Various | |
| – For Initial 3 | ||||||
| Months of | ||||||
| Operation(11) | ||||||
| TOTAL | $351,900 | $698,850 | ||||
| ESTIMATED | ||||||
| INITIAL | ||||||
| INVESTMENT | #### Notes: |
We do not offer direct or indirect financing for these items. Our estimates are based on our experience, the experience of our affiliates, expenditures that our franchisees have reported to us, and our current requirements for Facial Bars. All expenditures paid to us or our affiliates are uniform and non-refundable under any circumstances once paid. All expenses payable to third parties are non-refundable, except as you may arrange for utility deposits and other payments.
- Background Check. After you apply to become a franchisee or area developer and after the expiration of the 14-day waiting period following your receipt of this disclosure document, you will be required to submit to a background check which includes a criminal/civil record search and a credit check. You will be required to pay a non-refundable background check fee that ranges from $200 to $300 per owner to us or directly to our designated background check provider. We will not countersign a Franchise Agreement until we
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, expenditures paid to Face Foundrie or its affiliates are generally non-refundable. Specifically, the FDD states that "All expenditures paid to us or our affiliates are uniform and non-refundable under any circumstances once paid." This means that once a franchisee pays any fees or costs to Face Foundrie or its affiliates, those payments are not refundable, regardless of the circumstances.
This non-refundable policy has significant implications for prospective Face Foundrie franchisees. It means that franchisees need to be certain about their decision to invest in a Face Foundrie franchise before making any payments to the company or its affiliates. This includes the initial franchise fee, system set-up fees, payments for the initial opening package, and other expenses. Franchisees should carefully review the Franchise Agreement and seek professional advice before making any payments to Face Foundrie.
However, the FDD also notes that expenses payable to third parties may be refundable, depending on the arrangements made. For example, utility deposits may be refundable according to the agreements with the utility companies. The background check fee, ranging from $200 to $300, is specifically noted as non-refundable, whether paid to Face Foundrie or directly to their designated background check provider. Franchisees should clarify the refund policies of third-party vendors before making any payments to them.
In summary, while most payments to Face Foundrie and its affiliates are non-refundable, franchisees may have opportunities to receive refunds from third-party vendors depending on the specific agreements in place. It is crucial for prospective franchisees to understand these policies and to conduct thorough due diligence before investing in a Face Foundrie franchise.