Is Face Foundrie required to conduct inspections of the franchisee's Facial Bar operation?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.08 Inspections.
Franchisor shall conduct, as it deems advisable, inspections of the operation of the Facial Bar by Franchisee.
5. TRADEMARKS; MODIFICATIONS.
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 the franchisee's Facial Bar operation. Specifically, Face Foundrie will conduct inspections of the Facial Bar as it deems advisable.
Face Foundrie may also inspect the franchisee's books and records at all reasonable times to verify gross sales and advertising expenditures, as well as any other matters relating to the Franchise Agreement or the operation of the Facial Bar. Face Foundrie can also require franchisees to submit copies of their books and records for offsite inspection to audit the Facial Bar.
While Face Foundrie bears the expense for these inspections, the franchisee may become responsible for covering the expenses if discrepancies are found. If an inspection reveals that the franchisee has understated gross sales by 2% or more, or if the audit was required due to the franchisee's failure to comply with reporting requirements, the franchisee will be responsible for reimbursing Face Foundrie for all reasonable expenses incurred during the inspection. These expenses include attorney's and accounting fees, travel expenses, room and board, and compensation for Face Foundrie's employees.