In Maryland, what is deferred until Face Foundrie completes its pre-opening obligations under the Franchise Agreement?

According to Face Foundrie's 2025 Franchise Disclosure Document, the Maryland Securities Commissioner requires a financial assurance based on Face Foundrie's financial condition. As a result, in Maryland, all initial fees and payments owed by franchisees are deferred until Face Foundrie completes its pre-opening obligations as outlined in the Franchise Agreement. Additionally, all development fees and initial payments by area developers are deferred until the first franchise under the development agreement opens.

This deferral of fees and payments provides a significant benefit to prospective Face Foundrie franchisees in Maryland. It reduces the initial financial burden and risk, as franchisees do not have to pay these fees until Face Foundrie has fulfilled its obligations to prepare the franchise for opening. This arrangement aligns the franchisor's interests with the franchisee's, as Face Foundrie is incentivized to complete the pre-opening tasks efficiently and effectively.

It is important for potential Face Foundrie franchisees in Maryland to understand the specific pre-opening obligations outlined in the Franchise Agreement. They should also confirm with Face Foundrie the process and timeline for completing these obligations to ensure clarity on when the initial fees and payments will become due. This deferral is specific to Maryland due to the requirements of the Maryland Securities Commissioner, highlighting the importance of understanding state-specific regulations when investing in a franchise.