Is Face Foundrie required to share supplier payments or discounts with its franchisees?

According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie is not required to share any payments or discounts they receive from suppliers with their franchisees. The FDD states that Face Foundrie and its affiliates may receive payments, discounts, or other forms of consideration from suppliers due to the suppliers' dealings with Face Foundrie franchisees or the Face Foundrie system as a whole. Face Foundrie has the right to use these amounts without any restrictions.

This means that Face Foundrie benefits from supplier relationships without having to pass those benefits on to franchisees. This is a fairly common practice in franchising, where the franchisor leverages the collective buying power of the entire franchise system to negotiate favorable terms with suppliers. These negotiated benefits, however, are not mandated to be shared with the franchisees.

For a prospective Face Foundrie franchisee, this implies that while they may benefit from the franchisor's negotiated supplier relationships in terms of potentially lower costs or higher quality products, they should not expect to directly receive any rebates or discounts that Face Foundrie itself receives from those suppliers. It is important for potential franchisees to factor this into their financial projections and understand that the franchisor may be profiting from these supplier arrangements.