What happens if Face Foundrie designates an exclusive supplier for a particular item?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
viously approved as meeting our standards, specifications and requirements.
You may purchase these items from any supplier that meets our standards and specifications, unless we designate one or more exclusive suppliers for an item, in which case, you must purchase the item from such exclusive supplier(s). We may designate at any time and for any reason, a single or multiple suppliers for these items and require you to purchase exclusively from the designated supplier or suppliers, which exclusive designated supplier(s) may be us or an affiliate of ours. We may disapprove of products and suppliers based on our desire to consolidate System purchases through fewer suppliers.
As of the date of this Disclosure Document, we have 10 mandatory suppliers (other than us and our affiliates as described below) that you are required to use to purchase certain proprietary products and services prior to
commencing operations of your Facial Bar and on an ongoing basis. We do not expect to approve another source of supply for any of these items that we have described in this paragraph. You may not have the right to substitute any new supplier for these items, or to request us to appoint or approve any new supplier.
- (1) You must purchase from a mandatory vendor an array of skincare products and tools sold at retail and used in the operation of your Facial Bar (including Face Foundrié-branded items), which as of the date of this Disclosure Document includes collagen spritz, serums, moisturizers, facial cups and gua sha, other general facial tools, shopping bags and other branded collateral;
- (2) You must obtain your facial bar management software, which handles scheduling, appointment booking, inventory, and payments, from our mandatory vendor;
- (3) You must use our mandatory vendor for online accounting software;
- (4) You must use our mandatory vendor for a financial performance data reporting platform (the cost of which is included as part the Technology Fee you pay to us);
- (5) You must use our mandatory vendor for digital advertising agency services;
- (6) You must purchase architectural services from a vendor we require;
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–31)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, if Face Foundrie designates one or more exclusive suppliers for an item, franchisees must purchase that item exclusively from the designated supplier(s). Face Foundrie retains the right to designate a single or multiple exclusive suppliers for any item at any time and for any reason. These exclusive suppliers may include Face Foundrie itself or its affiliates. This means a franchisee would be obligated to purchase the item directly from Face Foundrie or its chosen affiliate at their set price, which includes a profit for Face Foundrie.
This policy ensures uniformity and quality control across all Face Foundrie locations, but it also limits the franchisee's ability to shop around for better prices or alternative products. While franchisees can typically suggest alternative suppliers for approval, this option is removed when an exclusive supplier is designated.
As of the date of the 2025 Disclosure Document, Face Foundrie has 10 mandatory suppliers that franchisees are required to use for certain proprietary products and services before commencing operations and on an ongoing basis. These include suppliers for skincare products and tools, facial bar management software, online accounting software, a financial performance data reporting platform, digital advertising agency services, architectural services, millwork, branded exterior and interior signage, and skin treatment machines. Face Foundrie does not anticipate approving alternative suppliers for these items, further restricting the franchisee's options. Additionally, Face Foundrie has a sole approved vendor for direct mail services.
Face Foundrie and its affiliates also have the right to receive benefits such as rebates, discounts, and allowances from authorized suppliers based on the dealings those suppliers have with franchisees. These payments typically range from 2% to 10% of the franchisee's purchases from the vendor. This arrangement allows Face Foundrie to generate revenue from franchisee purchases through approved suppliers, which they can use without restriction.