Who has the right to charge the Face Foundrie Fund for reasonable administrative costs and overhead?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
We will have the right to charge the Fund for the reasonable administrative costs and overhead that we incur in activities reasonably related to the direction and implementation of the Fund and advertising programs for you and the System (for example, accounting costs, salaries, costs of our personnel for creating and implementing, advertising, merchandising, promotional and marketing programs and associated overhead).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 33–43)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie has the right to charge the Face Foundrie Fund for reasonable administrative costs and overhead. This includes costs incurred in activities related to the direction and implementation of the Fund and advertising programs for franchisees and the Face Foundrie system. Examples of these costs are accounting costs, salaries, and costs of personnel for creating and implementing advertising, merchandising, promotional, and marketing programs, as well as associated overhead.
This means that Face Foundrie can use the money in the advertising fund, which franchisees contribute to, to cover its own expenses related to managing the fund and creating marketing programs. While this is a common practice in franchising, it's important for prospective franchisees to understand how their contributions to the fund are being used. Face Foundrie retains sole discretion over the operation and advertising decisions of the Fund.
It is important to note that the Face Foundrie Fund is intended for brand development initiatives and programs to maximize public recognition and acceptance of the Face Foundrie system. The FDD specifies that Face Foundrie is not obligated to make expenditures for franchisees that are equivalent or proportionate to their contributions, or to ensure that any franchisee benefits directly or pro rata from the Fund's expenditures. Face Foundrie also states that any Facial Bar owned or operated by them or their affiliates will contribute to the Fund in the same manner as franchisees.
Face Foundrie will prepare an unaudited statement of the earnings and expenditures of the Fund on an annual basis, and this statement will be made available to franchisees within 60 days of Face Foundrie's fiscal year end upon written request. Franchisees should review these statements carefully to understand how the fund is being managed and how their contributions are being spent.