Under what conditions can Face Foundrie reduce or suspend marketing contributions?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, at any time, defer or reduce a franchise owner's Marketing Contributions and, upon written notice to you, reduce or suspend Marketing Contributions and operations for one or more periods of any length and terminate (and, if terminated, reinstate) the Fund. If we terminate the Fund, we will either spend all monies in the Fund for advertising or promotional purposes, or distribute all unspent monies to franchise owners, and to us and our affiliates, in proportion to their, and our, respective contributions during the preceding twelve-month period.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 33–43)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie may defer or reduce a franchise owner's marketing contributions at any time. Face Foundrie can also reduce or suspend marketing contributions and operations for one or more periods of any length, provided they give written notice to the franchisee. Face Foundrie can also terminate and reinstate the marketing fund.
If Face Foundrie terminates the marketing fund, they will either spend all the money in the fund for advertising or promotional purposes or distribute any unspent money to the franchise owners, Face Foundrie, and its affiliates. The distribution will be proportional to their respective contributions during the 12-month period before termination.
As a prospective franchisee, it's important to understand that Face Foundrie retains considerable discretion over the marketing fund. While all franchisees are expected to contribute, Face Foundrie can adjust contribution rates for future franchisees. This flexibility allows Face Foundrie to respond to changing market conditions or specific franchisee needs, but it also means that the marketing contribution terms could change over time.