When must a Face Foundrie franchisee pay the Standard Default Fee?

According to Face Foundrie's 2025 Franchise Disclosure Document, a franchisee must pay the Standard Default Fee immediately upon notice from Face Foundrie if they breach or default on certain provisions of the Franchise Agreement and fail to cure the breach within the given cure period. This fee is $500 per default per cure period that passes until the breach or default is resolved.

The Standard Default Fee is intended to offset Face Foundrie's costs incurred in addressing the default. These breaches and defaults are considered material breaches of the agreement and include those outlined in Section 14.03 of the Franchise Agreement.

This means that if a Face Foundrie franchisee violates a significant term of the agreement, such as failing to maintain required insurance or not adhering to brand standards, and does not correct the issue within the allotted time frame, they will be assessed a $500 fee for each cure period that elapses until the problem is fixed. This fee is in addition to any other remedies Face Foundrie may pursue under the law or the agreement. Franchisees should, therefore, carefully review Section 14.03 of the Franchise Agreement to understand what actions could trigger this fee and ensure they have systems in place to comply with all contractual obligations to avoid incurring these costs.