Is the Marketing Fund considered an asset of Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
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 is explicitly stated not to be an asset of Face Foundrie. The document outlines that the Marketing Fund is kept separate from Face Foundrie's other funds and is not used for the company's general operating expenses, except for reasonable salaries, administrative costs, and overhead related to the administration of the Marketing Fund and its advertising programs.
This separation provides a degree of financial transparency and protects franchisee contributions. A financial statement of the Marketing Fund's operations is prepared annually and available to franchisees upon request, allowing franchisees to monitor how the funds are being managed and spent.
Face Foundrie retains the flexibility to manage the Marketing Fund dynamically. The company may spend more or less than the aggregate contributions in any fiscal year, and the fund can borrow or invest to cover deficits or utilize surpluses. Interest earned on the Marketing Fund is directed towards advertising costs before other assets are used. Face Foundrie also has the option to incorporate the Marketing Fund as a separate entity, further delineating its operations and responsibilities.