For Face Foundrie franchisees in Indiana, who retains the benefits derived from transactions with suppliers, and why?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 8, "Restrictions on Sources of Products and Services," is amended by the addition of the following language:
Any benefits derived as a result of a transaction with suppliers for Indiana franchisees will be kept by us as compensation for locating suppliers and negotiating prices for you.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION OF THE FRANCHISE RELATIONSHIP (FDD pages 51–59)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the franchisor retains any benefits derived from transactions with suppliers for Indiana franchisees. This is explicitly stated in the addendum required by the state of Indiana.
Face Foundrie keeps these benefits as compensation for their services in locating suppliers and negotiating prices on behalf of the franchisees. This arrangement means that while Indiana franchisees may benefit from the franchisor's negotiated prices, they do not directly receive any additional financial benefits, such as rebates or discounts, that the franchisor may secure from suppliers.
Prospective franchisees in Indiana should consider this arrangement when evaluating the overall cost and potential profitability of a Face Foundrie franchise. It is important to understand that the franchisor is compensated for supplier negotiations, and this compensation comes in the form of retained benefits from supplier transactions, rather than direct fees charged to the franchisee.