From whom does Face Foundrie lease warehouse and office space?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company has a shared operating lease agreement with multiple related parties to warehouse and office space from the related parties common owner. The Company has reflected one third of the full lease arrangement in its financial statements to reflect the Company's share of the obligation. Were other related parties unable to meet their obligations, it is likely the Company would bear responsibility for the larger lease obligation.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the company has a shared operating lease agreement with multiple related parties to lease warehouse and office space from the related parties' common owner. Face Foundrie reflects one-third of the full lease arrangement in its financial statements to represent the company's share of the obligation.
This arrangement carries a risk. If other related parties are unable to meet their lease obligations, Face Foundrie would likely bear responsibility for the larger lease obligation. This means Face Foundrie could potentially be liable for the full lease amount if the other parties sharing the space default on their payments.
Prospective franchisees should be aware of this shared lease arrangement and the potential financial risk it entails. It would be prudent to inquire further about the identities of the related parties, the specifics of the lease agreement, and the financial stability of the other tenants to assess the potential risk exposure. Understanding the full scope of the lease obligations and the potential for increased financial burden is crucial for making an informed investment decision.