Under what conditions would a Face Foundrie franchisee be required to pay an extension fee?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
visit. These costs are non-refundable.
Extension Fee
You will have 10 months from the date you sign the Franchise Agreement to open and begin operating your Facial Bar. If you request to extend that time by six months, and we approve your request, you will pay us an extension fee. The amount of the extension fee will depend on whether you want to retain any protected territory that has been granted to you. If you want to retain the protected territory, the extension fee will be $2,500. If you instead want to release any protected territory that has been granted to you and seek a site for your location in an area "to be determined," the extension fee will be $1,500. If we grant the extension, after 16 months from the date you sign the Franchise Agreement you must begin paying the Minimum Royalty Fee to us, whether or not your Facial Bar is open. After 16 months, if you have not opened your Facial Bar we may place the Franchise Agreement in default and, if you do not open within any time that may be provided for cure, we may terminate the Franchise Agreement, even if you have been paying Minimum Royalty Fees to us. Extension fees may also apply if we agree to allow you to extend the date for opening any Facial Bar that you agree to open under your Area Development Agreement. We are not obligated to grant any extensions, and we have the right to condition our consent on other requirements. Extension fees are not refundable and are
Source: Item 5 — INITIAL FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, an extension fee is required if a franchisee needs more time to open their Facial Bar beyond the initial 10-month period from signing the Franchise Agreement. If a franchisee requests a six-month extension, and Face Foundrie approves it, the franchisee must pay an extension fee. The amount of this fee depends on whether the franchisee wishes to retain any protected territory granted to them.
If the franchisee wants to keep their protected territory, the extension fee is $2,500. Alternatively, if the franchisee agrees to release their protected territory and seeks a site in an area "to be determined," the extension fee is $1,500. It's important to note that even if an extension is granted, after 16 months from the Franchise Agreement date, the franchisee must begin paying the Minimum Royalty Fee, regardless of whether the Facial Bar is open.
Face Foundrie is not obligated to grant any extensions and may impose other requirements as a condition of approval. Furthermore, if the Facial Bar is not open after 16 months, Face Foundrie may place the Franchise Agreement in default and potentially terminate it, even if the franchisee has been paying Minimum Royalty Fees. Extension fees are non-refundable and are not credited against any other obligations the franchisee may have to Face Foundrie. Extension fees may also apply to Area Development Agreements.