What is the late payment fee charged by Face Foundrie for overdue payments?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
actually owes Franchisor, Franchisor will debit Franchisee's account for the balance on a day Franchisor specifies. If the Royalty Fee, Marketing Contribution, and other amounts Franchisor debits are greater than the fees Franchisee actually owes Franchisor, Franchisor will credit the excess against the amount Franchisor otherwise would debit from Franchisee's account during the following month.
- 6.05 Late Payments and Insufficient Funds. All overdue payments for fees required to be paid hereunder shall bear interest from the date due at the rate specified by Franchisor from time to time, up to the highest rate permitted by law, but in no event shall such rate exceed one and one-half percent (1½%) per month. Interest shall accrue on all late payments regardless of
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, if a franchisee makes a payment after the due date, Face Foundrie has the right to charge a $50 late payment fee. Additionally, Face Foundrie can charge interest on the overdue amount. This interest accrues from the date the payment was due, at a rate Face Foundrie specifies, up to the highest rate legally permitted. However, the interest rate will not exceed 1.5% per month.
This policy means that Face Foundrie franchisees need to prioritize timely payments to avoid incurring these additional costs. The late payment fee and interest charges can add up quickly, impacting the franchisee's profitability. It is important to note that interest accrues on all late payments, regardless of whether Face Foundrie chooses to terminate the Franchise Agreement.
In addition to late payment fees, Face Foundrie also charges a $30 insufficient funds fee for any payment method, such as a check or automated bank draft, that is not honored by the franchisee's bank. This highlights the importance of ensuring sufficient funds are available when payments are processed to avoid these additional charges. Face Foundrie retains the right to apply any payments made by the franchisee towards past due amounts at its discretion, regardless of any designation made by the franchisee.
Face Foundrie also requires franchisees to make payments via automated bank draft for Royalty Fees, Marketing Contributions, Technology Fees, and other fees. Franchisees must provide their bank details at least 30 days before opening their Facial Bar. Franchisees must also execute an Electronic Funds Withdrawal and Credit Card Authorization, granting Face Foundrie the authority to charge any amounts owed under the Franchise Agreement or any other agreement between the franchisee and its affiliates. This ensures Face Foundrie can collect payments efficiently and address any outstanding balances promptly.