Is Face Foundrie required to approve any particular supplier?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
tions, or other actions or proceedings relating to the Facial Bar. Upon request from Franchisor, Franchisee will provide additional information as may be required by Franchisor about the same.
- (r) At the request of Franchisor, but not more often than once every five (5) years, unless sooner required by Franchisee's lease, Franchisee shall undertake Refurbishments (as defined in Section 15.01) of the Premises, at its expense.
9.02 Purchases and Approved Suppliers.
- (a) Franchisee shall purchase (or lease) all equipment, machinery, vehicles, fixtures, furnishings, signs, décor, beauty and facial, eyebrow, and eyelash products and supplies, back bar and retail products, packaging, furnishings, uniforms, technology, and other products, supplies or services required for the establishment and operation of the Facial Bar from suppliers designated or approved in writing by Franchisor (as used in this Section 9 the term "supplier" shall include manufacturers, distributors and other forms of suppliers). Franchisor may designate at any time and for any reason, a single or multiple supplier(s) for equipment, machinery, vehicles, fixtures, furnishings, signs, décor, beauty and facial, eyebrow, and eyelash products and supplies, back bar and retail products, packaging, furnishings, uniforms, technology, and other products, supplies or services and require Franchisee to purchase exclusively from such designated supplier or suppliers, which exclusive designated supplier(s) may be Franchisor or an Affiliate of Franchisor. If Franchisor designates itself as a supplier, Franchisor has the right to earn a profit on any items it supplies. Franchisor and its Affiliates may receive payments, discounts or other consideration from suppliers in consideration of such suppliers' dealings with Franchisee and/or the System, and may use all amounts received by it without restriction. Franchisor is not required to give Franchisee an accounting of supplier payments or to share the benefit of supplier payments with Franchisee or other System franchisees.
- (b) If Franchisee desires to purchase any equipment, machinery, vehicles, fixtures, furnishings, signs, décor, beauty and facial, eyebrow, and eyelash products and supplies, back bar and retail products, packaging, furnishings, uniforms, technology, and other products, supplies or services from suppliers other than those previously approved by Franchisor and such items have not been designated by Franchisor to be exclusively supplied by a designated supplier(s), Franchisee shall first submit to Franchisor a written request for authorization to purchase such items, together with such information and samples as Franchisor may require. Franchisor shall have the right to require periodically that its representatives be permitted to inspect such items and/or suppliers' facilities, and that samples from the proposed suppliers, or of the proposed items, be delivered for evaluation and testing, either to Franchisor or to an independent testing facility designated by Franchisor. Permission for such inspections shall be a condition of the initial and continuing approval of such supplier, manufacturer or distributor. A charge equal to the greater of $2,500 or the reasonable cost of the evaluation and testing, which may include travel expenses incurred by Franchisor, shall be paid by Franchisee. Franchisor shall, within ninety (90) days after its receipt of such request and completion of such evaluation and testing (if required by Franchisor), notify Franchisee in writing of its approval or disapproval. Franchisor may deny such approval for any reason, including its determination to limit the number of approved suppliers. Nothing in the foregoing shall be construed to require Franchisor to approve any particular supplier, nor to require Franchisor to make available to prospective suppliers, standards and specifications for formulas, which Franchisor shall have the right to deem confidential. Franchisor reserves the right, at its option, to re-inspect from time to time the facilities and products of any such approved supplier and to revoke its approval upon the supplier's failure to continue to meet any of Franchisor's then-current criteria.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees must purchase equipment, products, and supplies from suppliers that Face Foundrie designates or approves in writing. Face Foundrie can designate single or multiple suppliers for items such as equipment, beauty products, furnishings, and technology. These designated suppliers can include Face Foundrie itself or its affiliates, from which Face Foundrie can profit.
If a Face Foundrie franchisee wants to buy from a supplier not already approved, they need to submit a written request to Face Foundrie for authorization, including any information or samples Face Foundrie requires. Face Foundrie has the right to inspect suppliers' facilities and products, and the franchisee may have to pay an evaluation and testing charge, with a minimum of $2,500, to cover these inspections, including Face Foundrie's travel expenses.
Face Foundrie will notify the franchisee of its decision within 90 days after receiving the request and completing the evaluation. However, Face Foundrie is not obligated to approve any particular supplier or to share its standards and specifications with potential suppliers, as it can deem this information confidential. Face Foundrie can also re-inspect approved suppliers and revoke approval if they fail to meet current criteria, and the franchisee must then stop purchasing from that supplier.
In practice, this means a Face Foundrie franchisee's choice of suppliers is heavily controlled by the franchisor. While franchisees can request approval for new suppliers, Face Foundrie has broad discretion in granting or denying approval, and can profit from required purchases made through its own designated suppliers. This arrangement is fairly common in franchising, allowing franchisors to maintain quality control and potentially generate additional revenue.