When does the Minimum Royalty Fee for a Face Foundrie franchise begin?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
more than two owners, the fee may be higher.
ITEM 6. OTHER FEES
| Type of Fee | Amount | Due Date | Remarks (See Note 1) |
|---|---|---|---|
| ROYALTY FEE | 7% of Gross Sales; subject to the Minimum Royalty Fee. | The Minimum Royalty Fee is $1,500 per month, starting on the first day of the month following the earlier of (a) the date your Facial Bar opens, and (b) the date that is 10 months after you sign your Franchise Agreement (subject to any approved ex |
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the minimum royalty fee is due starting the first day of the month following whichever occurs sooner: the date the Facial Bar opens, or 10 months from the signing of the Franchise Agreement. This 10-month period is subject to any approved extensions. The minimum royalty fee is $1,500 per month.
Face Foundrie will reconcile the minimum royalty fee with the actual royalty fees paid around the 5th of the month following the month the fee applies. If there is a difference, Face Foundrie will debit the franchisee's account for any additional royalty fees due. However, Face Foundrie retains the right to modify the timing or schedule of this reconciliation.
In addition to the minimum royalty fee, Face Foundrie franchisees also pay a royalty fee of 7% of gross sales. The minimum royalty fee ensures that Face Foundrie receives a base level of income from each franchise, regardless of sales volume. This is a fairly common practice in franchising, as it provides the franchisor with a predictable income stream to support ongoing services and brand development.