Will the Marketing Fund be accounted for separately from Face Foundrie's other funds?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) The Marketing Fund shall be accounted for separately from Franchisor's other funds and shall not be used to defray any of Franchisor's general operating expenses, except for such reasonable salaries, administrative costs and overhead as Franchisor may incur in activities reasonably related to the administration or direction of the Marketing Fund and its advertising programs.
The Marketing Fund will not be Franchisor's asset.
A financial statement of the operations of the Marketing Fund shall be prepared annually and shall be made available to Franchisee upon request.
Franchisor may spend in any fiscal year more or less than the aggregate contribution of all Face Foundrié Facial Bars to the Marketing Fund in that year, and the Marketing Fund may borrow from Franchisor or others to cover deficits or invest any surplus for future use.
Any lender loaning money to the Marketing Fund shall receive interest at a reasonable rate.
All interest earned on monies contributed to the Marketing Fund will be used to pay advertising costs before other assets of the Marketing Fund are expended.
Franchisor may cause the Marketing Fund to be incorporated or operated
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Marketing Fund will be accounted for separately from Face Foundrie's other funds. The funds will not be considered an asset of Face Foundrie. The document states that Face Foundrie can use the marketing contributions to cover costs related to maintaining, administering, and directing advertising materials, programs, and public relations activities. These costs can include salaries and overhead incurred by Face Foundrie.
Furthermore, Face Foundrie will provide an annual financial statement of the Marketing Fund's operations to franchisees upon request. Face Foundrie has the right to spend more or less than the total contributions from all Face Foundrié Facial Bars in any given year. To cover deficits, the Marketing Fund may borrow from Face Foundrie or other sources, and any surplus may be invested for future use. Any loans to the Marketing Fund will accrue interest at a reasonable rate.
Interest earned on the Marketing Fund will be used to cover advertising costs before any other assets of the fund are used. Face Foundrie also has the option to incorporate or operate the Marketing Fund through a separate entity. This separate entity, if established, will have all the rights and duties specified in the agreement. Face Foundrie is not liable for actions related to the Marketing Fund that are consistent with the agreement and done in good faith. However, Face Foundrie is not acting as a trustee or fiduciary with respect to the marketing contributions collected.