When does Face Foundrie reimburse each location for redeemed gift cards?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company processes gift card purchases for all locations and recognizes a gift card liability in the amount of the unredeemed gift cards as of year-end. The Company then reimburses each location when the gift cards are redeemed.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the company processes gift card purchases for all locations and recognizes a gift card liability for the amount of unredeemed gift cards at the end of the year. Face Foundrie then reimburses each location when the gift cards are redeemed.
For a prospective franchisee, this means that Face Foundrie manages the gift card program centrally. The franchisee does not receive revenue until a gift card is redeemed at their location. This arrangement ensures that Face Foundrie tracks the overall gift card liability and manages the financial aspects of the program.
This system reduces the administrative burden on franchisees, as they do not have to manage gift card sales and track liabilities independently. However, it is important for franchisees to understand the timing of reimbursements to manage their cash flow effectively. Franchisees should confirm with Face Foundrie the specific procedures and timelines for reimbursement to ensure smooth operations.