What is the Face Foundrie franchisee's obligation regarding investigating the costs of obtaining a location?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
e space. Facial Bar locations are typically in commercial retail areas. Because of the wide variation in lease rates for retail space, you should thoroughly investigate the costs of obtaining a location.
-
- Leasehold Improvements. The cost of leasehold improvements will vary widely depending upon the size and condition of the premises, whether or not there are any existing and comparable leasehold improvements in the premises, the extent and quality of improvements desired by you over and above our minimum requirements, the landlord's cash contribution to the cost of the improvements, whether you utilize union or non-union labor, and other factors. Our estimates are based on the assumption that the location is in suburban or urban retail lifestyle center space with approximately 1,400 to 2,200 square feet. Estimates are based on spaces delivered in a variety of conditions, but typically with a minimum of a level concrete floor suitable for floor coverings, HVAC, electricity, gas, sewers, bathroom facilities, water and plumbing. Our estimates assume standard tenant improvements and excludes items such as structural construction, site surveys, site plans, energy studies, exterior improvements, or building elevations. Estimates assume a typical tenant improvement allowance, cash contribution, or landlord work letter from your landlord for the cost of improvements. Your costs may be higher if these arrangements are not available through your landlord.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a prospective franchisee is expected to thoroughly investigate the costs of securing a location for their Facial Bar. The document emphasizes that due to the considerable variation in lease rates for retail spaces, franchisees must conduct thorough due diligence.
The FDD indicates that Face Foundrie is unable to estimate the total cost of purchasing suitable premises or the amount of any required down payment. Rent, common area maintenance fees, and property taxes can fluctuate based on factors such as the size and condition of the premises, its location, building size, access to major streets, demand for the site, build-out requirements, and any construction allowances provided by the landlord. The document notes that typical Facial Bar locations are in commercial retail areas and occupy approximately 1,400 to 2,200 square feet of net rentable space, regardless of whether the premises are leased or purchased.
Furthermore, the cost of leasehold improvements can vary widely depending on the size and condition of the premises, the existence of comparable leasehold improvements, the extent and quality of desired improvements beyond Face Foundrie's minimum requirements, the landlord's cash contribution, and whether union or non-union labor is used. Face Foundrie's estimates are based on locations in suburban or urban retail lifestyle centers with 1,400 to 2,200 square feet, assuming a minimum of a level concrete floor, HVAC, electricity, gas, sewers, bathroom facilities, water, and plumbing. The estimates also assume standard tenant improvements and exclude structural construction, site surveys, site plans, energy studies, exterior improvements, or building elevations. Franchisees should be aware that their costs may be higher if they cannot secure typical tenant improvement allowances or cash contributions from their landlord.