Under what circumstances does Face Foundrie charge a Standard Default Fee?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's use at the Facial Bar. This Technology Fee may change from time to time. If Franchisor does not directly provide these services, you will be required to sign a separate agreement with Franchisor's designated provider of these services (which
may be an affiliate of Franchisor). Payment of the Technology Fee shall be made at the same time as the Royalty Fee.
(c) Default Fees.
- a. Standard Default Fee. In addition to Franchisor's other rights under the law and this Agreement, if Franchisee breaches or defaults on certain provisions of this Agreement that is not otherwise addressed by another fee in this section, and Franchisee fails to cure the breach or default during the cure period, Franchisee will immediately on notice from Franchisor pay to Franchisor a fee of Five Hundred Dollars ($500) per default per cure period that passes until the breach or default is
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a Standard Default Fee of $500 per default per cure period is charged if a franchisee breaches or defaults on certain provisions of the Franchise Agreement and fails to correct the issue within the given cure period. This fee is intended to offset Face Foundrie's costs associated with addressing the default. These breaches and defaults are considered material violations of the agreement and include those outlined in Section 14.03 of the Franchise Agreement.
This means that if a Face Foundrie franchisee violates a significant term of their agreement, such as failing to maintain required insurance or not adhering to brand standards, they will be subject to this fee if the problem isn't fixed promptly. The franchisee must pay the Standard Default Fee immediately upon notice from Face Foundrie.
It is important for prospective Face Foundrie franchisees to carefully review Section 14.03 of the Franchise Agreement to understand what specific actions or omissions could trigger the Standard Default Fee. Understanding these potential default scenarios can help franchisees avoid costly penalties and maintain a positive relationship with Face Foundrie.