Do the labor costs for Face Foundrie include a management fee paid to an affiliate?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
The labor costs include payroll and professional fees.
These figures do not include salary for the owner, but do include the salary for a Salon Manager.
These figures also do not include a management fee paid to our affiliate for certain administrative expenses, as that is an expense that would not apply to the operation of 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 labor costs for the company-owned Facial Bars used in the Item 19 financial performance representation do not include a management fee paid to an affiliate. The FDD specifies that these figures do include payroll and professional fees, as well as the salary for a Salon Manager, but exclude the owner's salary.
This is favorable for prospective franchisees because the financial performance data presented is more representative of what a franchisee might experience. If the reported labor costs included a management fee not applicable to franchisees, it would skew the data and make it harder to estimate potential profitability.
However, it is important to note that the labor costs provided are based on the company's corporate Facial Bars and may not be fully representative of costs at a franchised location. The FDD advises that a franchisee's actual expenses will depend on factors such as location, staffing levels, and local marketing expenditures. Therefore, while the exclusion of affiliate management fees provides a clearer picture, franchisees should still conduct their own thorough investigation to estimate their specific labor costs.