When is the Securities Offering fee due to 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 due 'upon demand.' This fee is applicable if a franchisee proposes to engage in a public or private securities offering. The purpose of the fee is to reimburse Face Foundrie for their reasonable costs and expenses, including legal and accounting fees, incurred to evaluate the proposed offering.
In practical terms, this means that if a Face Foundrie franchisee decides to raise capital through a securities offering, they will be responsible for covering Face Foundrie's expenses in assessing the offering. The amount of the fee will depend on the actual costs incurred by Face Foundrie during the evaluation process.
Franchisees should be aware that this fee is in addition to any other costs associated with conducting a securities offering, such as legal and accounting fees for their own advisors. It is important for prospective franchisees to factor in this potential expense when considering their financing options and business plans. Because the fee is based on Face Foundrie's actual expenses, the franchisee should communicate with Face Foundrie to understand the scope and estimated cost of the evaluation process before proceeding with a securities offering.