Under what circumstances does a Face Foundrie franchisee have to pay the Insurance Handling Fee?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | of Fee Amount Due Date | Remarks (See Note 1) | ||
|---|---|---|---|---|
| pay us up to $500 per default per cure period until the default is cured to offset our expenses incurred to address the default. | ||||
| Unauthorized Advertising Fee | $500 per day of use of unauthorized advertising. | Upon demand. | This fee is payable to us if you use unauthorized advertising in violation of the terms of the Franchise Agreement. This is in addition to other remedies available to us. This may not be enforceable under state law. | |
| PROHIBITED PRODUCT, | i I complied of of offering I It incore | This fee is payable to us in the event that you offer or provide any unauthorized products or services from your Facial Bar, or use any unauthorized supplier. This in addition to other remedies available to us. This may not be enforceable under state law. | ||
| SERVICE, SUPPLIER FEE | ||||
| INSURANCE HANDLING | Currently $250. | Immediately after notice from us. | You only pay this fee to us if you fail to obtain or maintain insurance, and we obtain the insurance coverage for you. This fee does not include the cost of insurance |
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, a franchisee is required to pay an Insurance Handling Fee under specific circumstances related to insurance coverage. The Insurance Handling Fee is currently $250. This fee is levied if the franchisee fails to obtain or maintain the required insurance coverage, and as a result, Face Foundrie obtains the insurance coverage on behalf of the franchisee.
It's important to note that the $250 Insurance Handling Fee does not include the cost of the insurance premiums themselves. In addition to the handling fee, the franchisee is also responsible for reimbursing Face Foundrie for the actual cost of the insurance premiums. This means the franchisee will have to pay both the $250 fee and the full cost of the insurance policy obtained by Face Foundrie.
This policy encourages franchisees to proactively manage their insurance requirements to avoid incurring additional fees and ensures that all Face Foundrie locations maintain adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. The fee is due immediately after notice from Face Foundrie that they have obtained the insurance coverage for the franchisee.