Under what conditions 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 is charged if a franchisee breaches or defaults on certain provisions of the Franchise Agreement. This fee applies to breaches not covered by other specific fees outlined in the agreement.
The Standard Default Fee is levied if the franchisee fails to correct the breach or default within the given cure period. Face Foundrie will notify the franchisee of the fee, which must be paid immediately. This fee is intended to offset Face Foundrie's costs associated with addressing the default.
The FDD specifies that breaches and defaults that trigger the Standard Default Fee are considered material violations of the agreement and include those outlined in Section 14.03 of the Franchise Agreement. Prospective franchisees should carefully review Section 14.03 to understand what actions could lead to this fee.
In summary, the Standard Default Fee is a financial penalty imposed by Face Foundrie for uncorrected, significant violations of the Franchise Agreement, serving as a deterrent and covering the franchisor's expenses in managing the franchisee's non-compliance.