Can Face Foundrie or its representatives inspect a Face Foundrie Facial Bar?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall allow representatives of Franchisor to inspect Franchisee's books and records at all reasonable times in order to verify Gross Sales that Franchisee reports as well as to verify Franchisee's advertising expenditures required under this Agreement and any other matters relating to this Agreement or the operation of the Facial Bar. Franchisor may require Franchisee to submit to Franchisor, or Franchisor's representatives, copies of Franchisee's books and records for any offsite inspection that Franchisor or Franchisor's representatives conduct to audit the Facial Bar. If an inspection reveals that Gross Sales of Franchisee have been understated, Franchisee shall immediately pay to Franchisor the amount of Royalty Fee, Marketing Contribution, and other amounts required to be paid to the Franchisor overdue, unreported or understated, together with interest as prescribed above. All inspections shall be at the expense of Franchisor; provided, however, if the inspection results in a discovery of a discrepancy in the total amount owed by Franchisee to Franchisor during the applicable audit period of two percent (2%) or more, or if the audit is required because Franchisee failed to comply with Franchisor's reporting requirements, then Franchisee shall pay or reimburse Franchisor for any and all reasonable expenses incurred by Franchisor in connection with the inspection, including, but not limited to, attorneys' and accounting fees, travel expenses, room and board and compensation of Franchisor's employees.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie has the right to conduct inspections of a franchisee's Facial Bar. Specifically, Face Foundrie's representatives are allowed to inspect the franchisee's books and records at reasonable times to verify reported Gross Sales and advertising expenditures, as well as any other matters relating to the Franchise Agreement or the operation of the Facial Bar.
These inspections can occur either on-site or off-site. Face Foundrie can require the franchisee to submit copies of their books and records for off-site inspections. Generally, Face Foundrie bears the expenses for these inspections.
However, if an inspection reveals a discrepancy of 2% or more in the total amount owed by the franchisee, or if the audit is required due to the franchisee's failure to comply with reporting requirements, the franchisee is responsible for reimbursing Face Foundrie for all reasonable expenses incurred during the inspection. These expenses can include attorneys' and accounting fees, travel expenses, room and board, and compensation for Face Foundrie's employees.