What does the Face Foundrie leasehold improvement estimate assume regarding tenant improvement allowances?

According to Face Foundrie's 2025 Franchise Disclosure Document, the leasehold improvement estimates assume a typical tenant improvement allowance, cash contribution, or landlord work letter from the landlord to offset the costs of improvements. The FDD also indicates that if these arrangements are not available through the landlord, the franchisee's costs may be higher.

In practical terms, this means that the estimated $45,000 to $233,000 for leasehold improvements is based on the expectation that the landlord will contribute to the build-out costs. This contribution could come in the form of a direct cash allowance, a reduction in rent, or the landlord completing some of the construction work themselves. The specific amount of the landlord's contribution can vary significantly depending on the location, the condition of the space, and the negotiation skills of the franchisee.

Prospective Face Foundrie franchisees should carefully investigate the availability of tenant improvement allowances when evaluating potential locations. If a landlord is unwilling to provide an allowance, the franchisee should be prepared to cover the full cost of leasehold improvements, which could significantly increase their initial investment. It would be prudent to discuss typical tenant improvement allowances in different markets with existing Face Foundrie franchisees to better understand the potential range of costs.