When does the minimum royalty fee of $1,500 per month start for a Face Foundrie franchise?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
tail sales and paid over to the appropriate governmental authority.
Note 3: Beginning on the first day of the month following the earlier of (a) the date your Facial Bar opens, and (b) date that is 10 months from the signing of your Franchise Agreement (subject to any extensions that have been granted), you will be required to pay a Minimum Royalty Fee of $1,500 per month. We will generally reconcile the Minimum Royalty Fee with the Royalty Fees you have actually paid on the 5th day of the month following the month in which the fee applies, and we will debit your account for any additional Royalty Fees due, provided that we reserve to mod
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees are required to pay a minimum royalty fee of $1,500 per month. This fee commences on the first day of the month following whichever occurs sooner: either the date the Facial Bar opens for business, or 10 months from the signing date of the Franchise Agreement. This 10-month period is subject to any approved extensions.
Face Foundrie reconciles the Minimum Royalty Fee with the actual Royalty Fees paid, typically on the 5th day of the month following the month the fee applies. If there is a balance due, Face Foundrie will debit the franchisee's account for the additional Royalty Fees. However, Face Foundrie retains the right to modify the timing or schedule of this reconciliation at its discretion.
For a prospective Face Foundrie franchisee, this means that even if the Facial Bar is not yet generating sufficient revenue to meet the 7% of gross sales royalty fee, they will still be obligated to pay the $1,500 minimum monthly royalty starting either 10 months after signing the agreement or when they open, whichever is earlier. This could impact the franchisee's initial cash flow and profitability, especially if the opening is delayed or sales are initially slow. It is important to note that the royalty fee is 7% of gross sales, but is subject to the minimum royalty fee.