What were the total operating revenues for Face Foundrie in the year with $1,067,442 in royalty fees?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Operating revenues | |||
|---|---|---|---|
| Royalty fees | $ 1 ,736,820 | $ 1 ,067,442 | $ 7 12,958 |
| Franchise fees | 5 33,096 | 6 51,100 | 3 47,280 |
| Advertising fees | 5 23,187 | 1 58,797 | 1 25,286 |
| Technology fees | 7 7,825 | 3 6,260 | 3 2,000 |
| Training & support fees | 4 ,000 | 1 5,441 | 1 4,300 |
| Other operating revenue | 2 25,601 | 5 8,971 | 8 ,664 |
| Total operating revenues | 3 ,100,529 | 1 ,988,011 | 1 ,240,488 |
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, in the year when royalty fees totaled $1,067,442, the total operating revenues for Face Foundrie were $1,988,011. This indicates the overall income generated from various sources related to the Face Foundrie franchise system during that specific year. These revenues include not only royalty fees but also franchise fees, advertising fees, technology fees, training and support fees, and other operating revenue.
For a prospective franchisee, understanding the relationship between royalty fees and total operating revenues is crucial. Royalty fees are typically a percentage of a franchisee's gross sales, paid to Face Foundrie for the use of its brand, systems, and ongoing support. The total operating revenues reflect the overall financial health and scale of the Face Foundrie franchise system. A higher total operating revenue, alongside consistent royalty fee collection, suggests a stable and growing franchise network.
It's important to note that while the $1,988,011 represents the total operating revenues for Face Foundrie in a specific year, it doesn't directly translate to franchisee profitability. Franchisees should focus on their individual unit economics, including their own revenues, expenses, and profitability, which may vary based on location, management, and local market conditions. Reviewing the Item 19 financial performance representation in the FDD can provide further insights into potential franchisee earnings.
Prospective franchisees should also investigate the trends in operating revenues and royalty fees over multiple years to assess the long-term viability and growth potential of the Face Foundrie franchise. Comparing these figures with industry benchmarks and the performance of other similar franchise systems can provide a more comprehensive understanding of the investment opportunity.