Under what conditions is the Tax Assessment fee payable to Face Foundrie?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Remarks (See Note 1) | ||
|---|---|---|---|---|
| us for our reasonable costs and | ||||
| expenses (including legal and | ||||
| accounting fees) to evaluate your | ||||
| proposed offering. | ||||
| TAX ASSESSMENT | Our actual expenses. | Upon demand. | Payable only if there is a sales tax, | |
| gross receipts tax, or similar tax or | ||||
| assessment (other than income | ||||
| tax) imposed against us with | ||||
| respect to any payments you | ||||
| make to us under the Franchise | ||||
| Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 15–22)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Tax Assessment fee is payable only if a sales tax, gross receipts tax, or similar tax or assessment (other than income tax) is imposed against Face Foundrie with respect to any payments a franchisee makes to Face Foundrie under the Franchise Agreement. The amount of the fee is Face Foundrie's actual expenses, and it is due upon demand.
In simpler terms, if a new tax law or assessment is enacted that requires Face Foundrie to pay taxes on the payments they receive from franchisees (excluding income tax), Face Foundrie can pass those costs on to the franchisees. This ensures that Face Foundrie does not have to absorb unexpected tax expenses related to franchise payments.
For a prospective Face Foundrie franchisee, this means that while the fee is not a standard, recurring expense, it is a potential cost that could arise depending on changes in tax laws. It is important to understand that this fee is not a fixed amount but rather Face Foundrie's actual expenses related to the tax assessment. Franchisees should stay informed about potential tax law changes that could trigger this fee.