What pre-opening services might Face Foundrie provide to franchisees?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
In identifying the associated performance obligations, the Company has elected to adopt the practical expedient for private company franchisors outlined in ASC 952-606, Franchisors—Revenue from Contracts with Customers. In addition, the practical expedient allows franchisors to account for pre-opening services as a single distinct performance obligation, which the Company has elected to adopt. These pre-opening services include the following services (which the Company may or may not provide all of):
- Assistance in the selection of a site
- Assistance in obtaining facilities and preparing the facilities for their intended use, including related financing, architectural, and engineering services, and lease negotiation
- Training of the franchisee's personnel or the franchisee
- Preparation and distribution of manuals and similar material concerning operations, administration, and record keeping
- Bookkeeping, information technology, and advisory services, including setting up the franchisee's records and advising the franchisee about income, real estate, and other taxes about local regulations affecting the franchisee's business
- Inspection, testing, and other quality control programs
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the company may provide several pre-opening services to franchisees. These services are considered a single distinct performance obligation by Face Foundrie for accounting purposes. However, Face Foundrie may not provide all of the listed services.
The potential pre-opening services include assistance in selecting a site for the franchise location. Face Foundrie may also assist in obtaining facilities and preparing them for use, which could include help with financing, architectural and engineering services, and lease negotiation. These services are crucial for setting up the physical location of the Face Foundrie franchise.
Face Foundrie may also provide training for the franchisee and their personnel. Additionally, they may prepare and distribute manuals and similar materials concerning operations, administration, and record-keeping. Furthermore, Face Foundrie could offer bookkeeping, information technology, and advisory services, including setting up the franchisee's records and advising on income, real estate, and other taxes, as well as local regulations. Finally, Face Foundrie might provide inspection, testing, and other quality control programs to ensure the franchise meets brand standards from the outset.