When is the initial franchise fee for Face Foundrie due?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
6.01 Initial Franchise Fee. Upon the execution of this Agreement, Franchisee shall pay to Franchisor an initial franchise fee in an amount set forth on Exhibit A (the "Initial Franchise Fee"). Franchisee acknowledges and agrees that the Initial Franchise Fee is paid as consideration for Franchisor granting Franchisee the right to develop, open and operate the Facial Bar using the Marks and the System, that the Initial Franchise Fee is fully earned by Franchisor at the time this Agreement is executed, and that the Initial Franchise Fee shall not be refundable for any reason.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the initial franchise fee is due upon the execution of the Franchise Agreement. This fee compensates Face Foundrie for granting the franchisee the right to develop, open, and operate a Facial Bar using Face Foundrie's trademarks and system.
Importantly, the FDD states that the initial franchise fee is considered fully earned by Face Foundrie at the time the Franchise Agreement is executed. This means that Face Foundrie is entitled to keep the fee once the agreement is signed, regardless of whether the franchisee successfully opens a location.
Furthermore, the FDD explicitly states that the initial franchise fee is non-refundable for any reason. Therefore, prospective Face Foundrie franchisees should be aware that this fee is a sunk cost and will not be returned under any circumstances.