What sections of the Face Foundrie Franchise Agreement address advertising obligations?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Creative | 7.63% | | Technology (Apps/Website) | 7.53% | | Support | 24.21% | | Resources/Tools | 9.78% |
Local Marketing – Section 10.03 of the Franchise Agreement
You must spend at least 2% of your Gross Sales annually on local marketing (e.g., marketing, promotions, publicity, social network). We have the right to require that you provide us with proof that these funds were spent. If you fail to meet your required monthly local marketing requirement, you must pay us the difference between the amount you spent and the required advertising expenditure. Company or affiliate-owned Facial Bars are not required to spend any minimum percentage of their Gross Sales on local marketing; however, they will make expenditures in local marketing programs, as appropriate.
Certain criteria will apply to any local marketing and promotions that you conduct. All of your local marketing and promotions must be dignified, must conform to our standards and requirements, and must be conducted in the media, type, and format that we have approved. You must follow the procedures provided in the Operations Manual with respect to all advertising and promotional requirements. You may not use any advertising or promotional plans that we have not approved in writing. Your prices must also be approved by us. We will have 10 days after submission to us to review your proposed advertising and promotional plans and materials and/or prices. Unless we provide our specific approval in writing of your proposed advertising and promotional plans and materials, and prices, they are deemed not approved. Any advertising that you propose to use that has either not been prepared by us or has not been approved by us in the immediately preceding twelve-month period must be submitted to us for our approval before you may use it. We also reserve the right to require you to discontinue the use of any previously approved advertising, promotional, sales, or marketing materials. Any materials you request us to create or submit to us for our review will become our property, and there will be no restriction on our use or distribution of these materials. At our request, you must include certain language in your local marketing materials, such as "Franchises Available" and our Website address, telephone number, social media icons, and addresses.
You must participate in any other promotional and advertising programs that we establish.
No advertising or promotion may be conducted by you over the Internet, social media, or through other forms of electronic or digital media, whether within or outside your Territory, without our express prior written consent, which we can withhold for any or no reason. (Sections 10.04 and 10.05 of the Franchise Agreement)
We do not have a local or regional advertising cooperative franchisees must participate in or an advertising council comprised of franchisees. Other than the Fund, you do not have to participate in any other marketing fund. You must participate in all gift certificate, gift card, loyalty, and rewards programs sponsored at any time by us. Your costs associated with the gift card program include your responsibility to pay swipe fees on any gift cards purchased with credit cards, costs of the gift cards, periodic promotions to encourage gift card sales (which may include providing vouchers for free products and services in exchange for gift card sales meeting designated thresholds), and your obligation to give away product and services based on rewards your customers acquire and redeem. In addition, you are required to participate at your expense in all programs sponsored at any time by us to promote and reward the frequent and regular customers of Face Foundrié Facial Bars.
Grand Opening Promotion
Before you open your Facial Bar, you will be expected to advertise its opening and create a Grand Opening Promotion plan that we approve. You must provide us with a Grand Opening Promotion plan at least 60 days prior to the opening of your Facial Bar. During the period of time beginning 30 days before until 60 days following the opening of the Facial Bar, you must spend a minimum of $25,000 to implement a grand opening advertising and promotional campaign, of which at least $3,000 must be spent on digital marketing. Although $25,000 is the minimum, we recommend you spend up to $60,000 or more.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 31–32)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, Section 10.03 of the Franchise Agreement outlines the franchisee's local marketing obligations. Face Foundrie requires franchisees to spend at least 2% of their gross sales annually on local marketing efforts, which include marketing, promotions, publicity, and social network activities. Franchisees must provide proof of these expenditures if requested by Face Foundrie. Failure to meet the minimum spending requirement results in the franchisee paying Face Foundrie the difference between the amount spent and the required expenditure. Company-owned locations are exempt from this minimum spending requirement.
All local marketing and promotions must adhere to Face Foundrie's standards and be conducted in approved media and formats, as detailed in the Operations Manual. Franchisees must obtain written approval for all advertising and promotional plans and prices, with Face Foundrie having 10 days to review submissions. Unapproved materials or prices are deemed not approved. Any advertising not prepared by Face Foundrie or approved within the last 12 months must be submitted for approval. Face Foundrie reserves the right to require discontinuation of previously approved materials. Materials submitted for review become Face Foundrie's property, with no restrictions on their use. Franchisees may be required to include specific language, such as "Franchises Available" and Face Foundrie's contact information, in their local marketing materials.
Sections 10.04 and 10.05 of the Franchise Agreement address advertising on the Internet, social media, or other electronic media, requiring express prior written consent from Face Foundrie, which can be withheld for any reason. Additionally, franchisees must participate in any promotional and advertising programs established by Face Foundrie. Section 10.01 of the Franchise Agreement addresses the Grand Opening Promotion, where franchisees are expected to advertise the opening of their Facial Bar and create a Grand Opening Promotion plan that Face Foundrie approves. Franchisees must spend a minimum of $25,000 during the period from 30 days before to 60 days following the opening, with at least $3,000 allocated to digital marketing. Face Foundrie recommends spending up to $60,000 or more and may require proof of these expenditures. Failure to meet the minimum spending requirement allows Face Foundrie to collect the difference. Franchisees may be required to work with designated vendors and purchase certain items from Face Foundrie or other designated vendors. The Facial Bar cannot open until all signage is installed.