What must a Face Foundrie franchisee do if there is a change in their banking relationship?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall immediately notify Franchisor of any change in Franchisee's banking relationship, including changes in
account numbers. Franchisor reserves the right to require Franchisee to pay any fees due under this Agreement by other means Franchisor may specify from time to time. If Franchisee does not report Gross Sales in the time period required by Franchisor, Franchisor may process an automated bank draft (or other method used by Franchisor to collect funds) based on one hundred twenty percent (120%) of the last Royalty Fee, Marketing Contribution, and other fees that Franchisor collected. If the Royalty Fee, Marketing Contribution, and other amounts Franchisor collects are less than the fees Franchisee actually owes Franchisor, Franchisor will debit Franchisee's account for the balance on a day Franchisor specifies. If the Royalty Fee, Marketing Contribution, and other amounts Franchisor debits are greater than the fees Franchisee actually owes Franchisor, Franchisor will credit the excess against the amount Franchisor otherwise would debit from Franchisee's account during the following month.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a franchisee must immediately notify Face Foundrie of any change in their banking relationship, including changes in account numbers. This requirement ensures that Face Foundrie can continue to collect fees and payments from the franchisee without interruption.
This notification is crucial because Face Foundrie reserves the right to require franchisees to pay fees through other means if necessary. Furthermore, if a franchisee fails to report gross sales on time, Face Foundrie may process an automated bank draft for 120% of the last Royalty Fee, Marketing Contribution, and other fees collected. This highlights the importance of maintaining accurate and up-to-date banking information with Face Foundrie to avoid any discrepancies or overcharges.
If the automated bank draft is less than what the franchisee owes, Face Foundrie will debit the account for the remaining balance. Conversely, if the draft exceeds the actual fees, Face Foundrie will credit the excess amount to the franchisee's account in the following month. Therefore, promptly reporting any changes in banking relationships is essential for a Face Foundrie franchisee to ensure accurate and timely payments and to avoid potential financial complications.