When does the Minimum Royalty Fee obligation begin for a Face Foundrie franchise?
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 exte |
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 obligated to pay a Minimum Royalty Fee of $1,500 per month. This obligation starts on the first day of the month following whichever occurs sooner: either the date the Facial Bar opens for business, or the date that is 10 months after the Franchise Agreement is signed. Any approved extensions to this timeline are taken into account.
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's 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 at their discretion.
This minimum royalty fee ensures that Face Foundrie receives a baseline income from each franchise location, regardless of its sales volume, especially during the initial months of operation. It is common practice in the franchise industry to implement minimum royalty fees to protect the franchisor's revenue stream and incentivize franchisees to achieve a certain level of sales. Prospective franchisees should factor this minimum fee into their financial projections to ensure they can meet this obligation, even if their sales are initially lower than expected.