Can the Face Foundrie transfer fee exceed $10,000?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Remarks (See Note 1) | ||
|---|---|---|---|---|
| TRANSFER FEE | $10,000 or such greater amount to cover our reasonable costs and expenses associated with the transfer. If you transfer an Area Development Agreement, we reserve the right to charge you a transfer fee of an amount equal to our then-current Franchise Fee for each Franchised Facial Bar that remains to be developed and opened in order to satisfy the Development Schedule, but not less than fifty percent (50%) of the Area Development Fee paid. | Before the consummation of the transfer or sale. | Payable when, and if, you transfer or sell your franchise. No transfer fee will be charged if you transfer your franchise to a corporation, limited liability company or other entity which you control. There are other conditions to transfer. |
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the transfer fee can exceed $10,000. The standard transfer fee is $10,000, but the agreement stipulates that the fee could be a "greater amount to cover our reasonable costs and expenses associated with the transfer." This means that Face Foundrie can charge more than $10,000 if their costs and expenses related to the transfer justify the higher fee.
In the event of transferring an Area Development Agreement, Face Foundrie reserves the right to charge a transfer fee equivalent to the then-current Franchise Fee for each Franchised Facial Bar that remains to be developed and opened to satisfy the Development Schedule. However, this fee will not be less than fifty percent (50%) of the Area Development Fee paid. This condition applies specifically to Area Development Agreements and could substantially increase the transfer fee beyond the standard $10,000, depending on the number of remaining locations to be developed.
It is important to note that no transfer fee is charged if the franchise is transferred to a corporation, limited liability company, or other entity controlled by the franchisee, provided other conditions to transfer are met. This exception could be beneficial for franchisees planning to restructure their business ownership. Prospective franchisees should carefully consider these transfer fee implications, especially if they anticipate selling or transferring their franchise in the future, or if they are considering an Area Development Agreement.