What is the formula for calculating the Development Fee for an Area Development Agreement with Face Foundrie?
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 developer to purchase additional units for $32,500 each.
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 for an Area Development Agreement is calculated by multiplying $40,000 by the number of Facial Bars the franchisee commits to open. This fee is payable in full when the Area Development Agreement is signed and is non-refundable.
In the last fiscal year, Face Foundrie's Development Fee was uniformly $36,000 multiplied by the number of Facial Bars to be developed under an Area Development Agreement, except that one existing area developer was allowed to purchase additional units for $32,500 each. This indicates that the Development Fee can vary and may be subject to change at Face Foundrie's discretion.
Prospective franchisees should note that the Development Fee is separate from the Initial Franchise Fee, which is $50,000 for a single unit. The Development Fee applies specifically to Area Development Agreements where the franchisee commits to opening multiple locations. It is important for potential area developers to carefully consider the number of units they commit to opening, as the Development Fee is non-refundable, regardless of whether all units are eventually opened.