What is the System Marketing Fund for Face Foundrie used for?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) The Fund, and all contributions to and earnings from the Fund, will be used exclusively to meet the costs of marketing and any other activities that we believe will enhance the System's image and, in our sole discretion, promote general public awareness of and favorable support for the System.
This includes the costs (including, without limitation, reasonable salaries and overhead incurred by us) of creating, preparing, administering, directing, and conducting media marketing campaigns and System advertising, marketing and sales programs and campaigns; consumer research and marketing surveys designed to assist in maintaining high quality standards; public relations activities; trade show participation (including travel and expenses for our staff); the development and operation of a national and regional accounts program; online directory listings; developing, enhancing, and maintaining our Website and other Internet marketing, as well as social media and other digital applications (and other successor technology platforms); sponsorship of organizations and events; purchasing promotional items and advertising materials; out-of-pocket expenses (including printing, postage, shipping, telephone and photocopying); our allocable overhead and administrative costs (including compensation and expenses of employees relating to the Fund); and providing promotional and other marketing materials and services to the Facial Bars operating under the System.
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, the System Marketing Fund is used to enhance the brand's image and promote public awareness and support for the Face Foundrie system. This includes a wide range of marketing and advertising activities.
Specifically, the fund covers the costs of creating, preparing, and conducting media marketing campaigns, advertising, and sales programs. It also supports consumer research and marketing surveys to maintain quality standards, public relations activities, and participation in trade shows. Furthermore, the fund is used for developing and operating national and regional accounts programs, online directory listings, and maintaining the Face Foundrie website, internet marketing, social media, and other digital applications.
The fund also sponsors organizations and events, purchases promotional items and advertising materials, and covers out-of-pocket expenses such as printing, postage, and telephone costs. It can also be used to cover Face Foundrie's overhead and administrative costs related to managing the fund, including employee compensation and expenses. The franchisor directs all advertising programs and has sole discretion over the fund's operation and advertising decisions.
Face Foundrie maintains the funds in a separate account and will provide an unaudited annual statement of earnings and expenditures within 60 days of the fiscal year end upon written request. The fund may spend more or less than the total contributions in a year and may borrow or invest surpluses. Franchisees should be aware that Face Foundrie does not have a fiduciary obligation regarding the fund's administration.