When is the Tax Assessment fee due to Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. | ||||
| TAX ASSESSMENT | Our actual expenses. | Upon demand. | Payable only if there is a sales tax, | |
| gross receipts tax, or similar tax or | ||||
| assessment (other than income | ||||
| tax) imposed against us with | ||||
| respect to any payments you | ||||
| make to us under the Franchise | ||||
| Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Tax Assessment fee is due to Face Foundrie 'Upon demand.' This fee covers Face Foundrie's actual expenses if a sales tax, gross receipts tax, or similar tax or assessment (excluding income tax) is imposed on payments a franchisee makes to Face Foundrie under the Franchise Agreement.
In simpler terms, if a taxing authority levies a tax specifically on the payments you make to Face Foundrie for royalties, marketing, or other fees, Face Foundrie will pass that tax on to you. This is not a fixed, recurring fee but rather a contingent one that arises only if such a tax is imposed.
As the franchisee, it is important to understand that 'upon demand' means Face Foundrie can request this payment at any time such a tax is levied. You should factor this potential cost into your financial planning, although it is not a guaranteed expense. It is also important to note that this tax assessment does not include income tax.