Is the Face Foundrie franchisee responsible for the expense of developing and implementing the grand opening promotion plan?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
10.01 Grand Opening Promotion. Franchisee, at its sole expense, must develop and implement a grand opening promotion plan approved by Franchisor to introduce the Facial Bar. Franchisee must provide Franchisor with a proposed grand opening promotional plan, and obtain Franchisor's approval of such plan, at least sixty (60) days prior to the opening of the Facial Bar. Franchisee is required to spend a minimum amount established by Franchisor for the grand opening marketing program in the time period beginning thirty
(30) days before until sixty (60) days following the grand opening of the Facial Bar. Franchisee must obtain Franchisor's approval to its plan and proposed expenditures prior to the execution of the program. Franchisor may require Franchisee to provide proof that these funds were spent. If Franchisee fails to spend the minimum required amount on the grand opening promotion plan, Franchisor has the right to collect from Franchisee the difference between what it should have spent and what it actually spent. The grand opening promotion plan is in addition to any marketing contributions that Franchisee must pay to Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the franchisee is responsible for the expenses associated with the grand opening promotion plan. The franchisee must develop and implement a grand opening promotion plan to introduce their Facial Bar, and this plan requires Face Foundrie's approval. This plan must be submitted to Face Foundrie for approval at least 60 days before the Facial Bar opens.
The Face Foundrie franchisee is required to spend a minimum amount on the grand opening marketing program, as determined by Face Foundrie, during the 30 days before and 60 days after the Facial Bar's grand opening. The franchisee must obtain Face Foundrie's approval for the plan and proposed expenditures before executing the program. Face Foundrie may also require proof that these funds were spent.
If a Face Foundrie franchisee fails to spend the minimum required amount on the grand opening promotion plan, Face Foundrie has the right to collect the difference between the amount that should have been spent and the amount actually spent. It is important to note that the grand opening promotion plan is separate from any marketing contributions the franchisee must pay to Face Foundrie, which are allocated to the System Marketing Fund.