Does Face Foundrie negotiate supply arrangements with suppliers for the benefit of franchisees?

According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie does negotiate supply arrangements with suppliers for the benefit of franchisees, and may continue to do so in the future. This indicates that Face Foundrie actively seeks to secure favorable terms and pricing from suppliers, which could potentially lower costs for franchisees and improve their profitability.

However, the FDD also states that Face Foundrie and its affiliates have the right to receive payments or other benefits like rebates, discounts, and allowances from authorized suppliers based upon their dealings with franchisees. These payments can range from 2% to 10% of the franchisee's purchases from the vendor. While Face Foundrie negotiates with suppliers, it also retains the right to receive payments from them, which it uses without restriction.

Prospective franchisees should be aware that while Face Foundrie aims to negotiate beneficial supply arrangements, they are also incentivized to approve suppliers who offer rebates or other financial benefits to Face Foundrie. This dual role could potentially create a conflict of interest, where the lowest possible price for the franchisee is not always prioritized. It is important for potential franchisees to consider this aspect and evaluate whether the negotiated arrangements truly offer the best value.