Were the gross sales reports for Face Foundrie facial bars audited?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
In the three tables below, we report gross sales data from our four corporate Facial Bars and our 34 franchised Facial Bars that were open during the entire reporting period of April 1, 2024, through March 31, 2025. The disclosures present the average and median gross sales performance of these Facial Bars, the number and percentage of Facial Bars whose performance met or exceeded the average, and the highest and lowest figures in the range. The information is based on gross sales reports from our point of sales system for the franchised Facial Bars, which were not audited, and the gross sales reports from our corporate Facial Bars' point of sales system, which were also not audited. The Facial Bars reported offer substantially the same products and services to the public as you will offer as a franchisee operating a franchised Facial Bar.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 59–69)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the gross sales reports from both franchised and corporate facial bars were not audited. The financial performance representation includes gross sales data from April 1, 2024, through March 31, 2025, for 34 franchised Facial Bars and four corporate Facial Bars. These figures were derived from the point of sales system.
Because the gross sales figures were not audited, prospective franchisees should be aware that the numbers presented have not been verified by a certified public accountant or subjected to an independent review. Face Foundrie notes that no CPA has audited these figures or expressed an opinion on their content or form. This means a potential franchisee must conduct their own due diligence and not rely solely on the franchisor's representations.
It is typical in the franchise industry for franchisors to present unaudited financial performance representations in their FDDs. The FDD advises that prospective franchisees should conduct an independent investigation of the costs and expenses they will incur in operating their Face Foundrie Facial Bar. Contacting current or former franchisees listed in the FDD is suggested as one way to gather this information and verify the franchisor's claims.
Given that the gross sales figures are unaudited, it is crucial for potential Face Foundrie franchisees to undertake thorough due diligence. This includes carefully reviewing the financial performance data, consulting with financial advisors, and verifying the information with existing franchisees to assess the potential profitability and risks associated with investing in a Face Foundrie franchise.