How is the Indemnification fee amount determined for a Face Foundrie franchise?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | of Fee Amount Due Date | Remarks (See Note 1) | ||
|---|---|---|---|---|
| pay us up to $500 per default per cure period until the default is cured to offset our expenses incurred to address the default. | ||||
| Unauthorized Advertising Fee | $500 per day of use of unauthorized advertising. | Upon demand. | This fee is payable to us if you use unauthorized advertising in violation of the terms of the Franchise Agreement. This is in addition to other remedies available to us. This may not be enforceable under state law. | |
| PROHIBITED PRODUCT, | i I complied of of offering I It incore | This fee is payable to us in the event that you offer or provide any unauthorized products or services from your Facial Bar, or use any unauthorized supplier. This in addition to other remedies available to us. This may not be enforceable under state law. | ||
| SERVICE, SUPPLIER FEE | ||||
| INSURANCE HANDLING | Currently $250. | Immediately after notice from us. | You only pay this fee to us if you fail to obtain or maintain insurance, and we obtain the insurance coverage for you. This fee does not include the cost of insurance premiums, for which you must also reimburse us. | |
| FEES | ||||
| Indemnification | Will vary under the circumstances. | Upon demand. | You must reimburse us if we are held liable for claims, damages or other relief arising out of your franchise operations. |
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Indemnification fee will vary based on the circumstances. This fee is payable upon demand.
The Indemnification fee is a reimbursement that a Face Foundrie franchisee must pay to the franchisor if Face Foundrie is held liable for any claims, damages, or other relief that arise from the franchisee's operations. This means that if a customer or another party sues Face Foundrie because of something that happened at the franchisee's location, and Face Foundrie is found liable, the franchisee will have to cover those costs.
This type of fee is relatively standard in franchising, as franchisors want to be protected from liabilities caused by the actions of their franchisees. It is important for a prospective Face Foundrie franchisee to understand what types of situations could trigger this fee and to ensure they have adequate insurance coverage to protect themselves. Franchisees should consult with a legal and financial advisor to assess the potential risks and liabilities associated with operating a Face Foundrie franchise.