When is the Royalty Fee payment due for Face Foundrie franchisees?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Initial Franchise Fee is paid as consideration for Franchisor granting Franchisee the right to develop, open and operate the Facial Bar using the Marks and the System, that the Initial Franchise Fee is fully earned by Franchisor at the time this Agreement is executed, and that the Initial Franchise Fee shall not be refundable for any reason.
6.02 Royalty Fee and Minimum Royalty Fee.
- (a) In addition to all other amounts required to be paid hereunder, during the term hereof, Franchisee agrees to pay Franchisor a continuing royalty fee (the "Royalty Fee") equal to the greater of: (i) seven percent (7%) of Gross Sales per month and (ii) the applicable Minimum Royalty Fee. Payment of the Royalty Fee shall be made no later than the 5th day of each month for Gross Sales from the prior month during the term of this Agreement.
- (b) The "Minimum Royalty Fee" applicable to the Facial Bar is an amount of One Thousand Five Hundred Dollars ($1,500) per month. The Minimum Royalty Fee will be assessed beginning on the first day of the month following the earlier of: (a) the date the Facial Bar opens, and (b) the date that is ten (10) months after the date of this Agreement, subject to any extensions to the required opening date that have been granted to Franchisee pursuant to Section 3.03. Franchisor will reconcile the Minimum Royalty Fee with the Royalty Fee Franchisee has actually paid on t
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, franchisees are required to pay a Royalty Fee, which is the greater of 7% of Gross Sales per month or a Minimum Royalty Fee. The Royalty Fee payment is due no later than the 5th day of each month, covering Gross Sales from the previous month.
The Minimum Royalty Fee is $1,500 per month, and it is assessed starting from the first day of the month following the earlier of the Facial Bar's opening date or ten months after the Franchise Agreement date, subject to any approved extensions. Face Foundrie will reconcile the Minimum Royalty Fee with the actual Royalty Fee paid by the franchisee on the 5th day of the month after the applicable quarter or on a schedule determined by Face Foundrie, debiting the franchisee's account for any additional Royalty Fees due.
It's important to note that even if a Face Foundrie franchisee pays the Minimum Royalty Fees, Face Foundrie retains the right to terminate the Franchise Agreement under its terms. Additionally, franchisees must provide their bank details to Face Foundrie at least 30 days before opening, and they must also complete an Electronic Funds Withdrawal and Credit Card Authorization form, allowing Face Foundrie to charge any amounts owed under the agreement.