Face Foundrié Franchising L.L.C.

The ad fund rate of 3.0% exceeds the typical range for health and beauty franchises (1.0%-2.5%). How is this ad fund allocated and what specific marketing initiatives have generated returns for franchisees?

Your system has grown 47.2% in the past year with zero unit closures or terminations. What is your attrition forecast for the coming 2-3 years, and are there any early warning signs of unit struggles that might not yet be reflected in official exit data?

The franchise agreement lists 22 termination causes, which is above the typical range (15-21). Can you provide a breakdown of these 22 causes and clarify which are non-curable versus those with cure periods?

The agreement specifies a 5-day cure period for payment defaults versus 30 days for other curable defaults. How frequently have franchisees faced termination due to payment defaults, and what is the typical default-to-termination timeline?

You require mandatory purchase of inventory and supplies from the franchisor, its affiliates, or 10 designated suppliers. What percentage of franchisee costs typically come from mandatory supplier purchases, and how does this compare to your royalty rate?

The renewal fee equals 25% of the then-current initial franchise fee. If the initial franchise fee increases significantly over time, what would this mean for a franchisee renewing after 10 years?

Can you provide a detailed breakdown of the $50,000 franchise fee and explain what training, equipment, and support are included at no additional cost?

Your support and training score is 100/100, significantly above the typical range for health and beauty franchises (81-96.25). What specific support and training initiatives justify this exceptional score?

All disputes must proceed through mediation followed by binding arbitration with a jury trial waiver. How many disputes have reached mediation or arbitration in the past 3 years, and what were the outcomes?

The agreement requires personal guarantees from all owners and their spouses. Are there any circumstances under which this guarantee can be reduced or eliminated, and what does the indemnification clause specifically require franchisees to cover?

Your financial performance data shows median gross sales of $746,383. What is the typical profit margin after royalties, ad fund, and mandatory supply purchases, and what percentage of franchisees meet or exceed this median?

How many units have reported financial data for the Item 19 disclosure, and what is the range of performance among units in similar markets?

Can you clarify the operational control clause requiring mandatory purchases from designated suppliers? What happens if a franchisee finds lower-cost alternatives from non-designated suppliers?

The territory is exclusive and protected, but the non-compete is limited to 2 years and 10 miles. What prevents the franchisor from opening a new location immediately adjacent to an existing franchisee after they exit?

Zero litigation cases over 3 years is unusual for a franchise system of this size. Does this reflect strong franchisee satisfaction, or is there a dispute resolution clause that discourages legal action in favor of arbitration?

The transfer fee is $10,000 and a renewal fee equals 25% of the then-current franchise fee. Are there any other hidden fees or assessments franchisees should expect beyond royalties, ad fund, and technology fees?

Your system achieved 47.2% unit growth in one year. How many of these new units came from existing franchisee expansion versus new franchisee recruitment, and what is the expected growth rate going forward?

Can you provide detailed unit-level P&L statements (not just sales figures) broken down by unit age, location type, and franchisee experience level to assess true profitability?