What does the Securities Offering fee cover for Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
ore frequently than every five years. | | | REFURBISHMENT | | | | | | SECURITIES OFFERING | Our actual expenses. | Upon demand. | Payable only if you propose to engage in a public or private securities offering, to reimburse | | | Type of Fee | Amount | | Remarks (See Note 1) | | |----------------|----------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--| | | | | us for our reasonable costs and | | | | | | expenses (including legal and | | | | | | accounting fees) to evaluate your | | | | | | proposed offering.
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Securities Offering fee is charged to reimburse Face Foundrie for reasonable costs and expenses if a franchisee proposes to engage in a public or private securities offering. These costs and expenses include legal and accounting fees incurred by Face Foundrie to evaluate the proposed offering. This fee is payable upon demand.
In simpler terms, if a Face Foundrie franchisee decides to raise capital by selling stocks or securities, Face Foundrie may charge this fee to cover their expenses in reviewing the franchisee's proposal. This protects Face Foundrie by ensuring they don't have to bear the costs of evaluating a franchisee's securities offering.
This type of fee is not uncommon in franchising. Franchisors want to ensure that any securities offering by a franchisee complies with legal requirements and doesn't negatively impact the brand. The franchisee should be prepared to pay for Face Foundrie's legal and accounting review if they plan to pursue this type of financing.