Can Face Foundrie require franchisees to become members of a purchasing cooperative?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (m) Become and remain in good standing a member of any purchasing and/or distribution cooperative/association/program designated by Franchisor and/or established by Franchisor for the System, remain a member in good standing thereof throughout the term of this Agreement and pay all membership fees or fees on purchases that are assessed by such purchasing and/or distribution cooperative/association/program.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees may be required to become members of a purchasing cooperative or association. Face Foundrie can designate or establish such a cooperative/association/program for the System.
If Face Foundrie designates or establishes a purchasing cooperative, franchisees must maintain membership in good standing throughout the term of the Franchise Agreement. Franchisees are also responsible for paying all membership fees or fees on purchases assessed by the purchasing cooperative or association.
This requirement ensures that Face Foundrie franchisees participate in any purchasing and distribution programs the company deems beneficial for the entire franchise system. It allows Face Foundrie to potentially leverage group buying power and maintain consistent standards across all locations. Franchisees should factor in potential membership and purchase fees when evaluating the overall cost of the franchise.