What is included in the Insurance Handling Fee that Face Foundrie charges?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to Franchisor's other rights under the law and this Agreement, in the event Franchisee fails to obtain or maintain insurance coverage required under this Agreement and Franchisor obtains the insurance coverage on Franchisee's behalf, Franchisor reserves the right to charge Franchisee its thencurrent insurance handling fee, which is in addition to the cost of insurance premiums, for which Franchisee must also reimburse Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the insurance handling fee is charged if a franchisee fails to obtain or maintain the required insurance coverage, and Face Foundrie obtains the insurance on the franchisee's behalf. In this case, Face Foundrie reserves the right to charge its then-current insurance handling fee.
This fee is in addition to the cost of the insurance premiums, which the franchisee must also reimburse to Face Foundrie. This means that franchisees are responsible for both the premiums and a separate handling fee if Face Foundrie has to step in to secure the required insurance coverage.
This policy incentivizes franchisees to proactively manage their insurance requirements to avoid incurring additional costs. Franchisees should clarify the current insurance handling fee to fully understand the potential financial implications of non-compliance with insurance requirements.