Face Foundrie Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$334,200 - $670,250
Franchise Fee
$36,000
Total US Locations
36
Business Summary
Face Foundrié operates focused facial bars offering efficient and effective services, including 20- to 50-minute facials, waxing, and skincare products. Face Foundrié franchisees operate their facial bar under the brand's trademark and system, which includes specific protocols, procedures, high-quality products, and high-end customer service. These facial bars typically occupy 1,400 to 2,200 square feet in high-traffic retail locations.
Corporate History
Face Foundrié Franchising L.L.C. was organized as a Minnesota limited liability company on April 14, 2020. It began offering franchises in May 2020. The franchisor was formed specifically to offer and service Face Foundrié facial bar franchises. Its parent company, Face Foundrié LLC, was organized in December 2018 and acts as a parent to the franchisor and its affiliates, providing certain corporate services. Face Foundrié Products L.L.C., an affiliate, was organized in March 2022 and sells Face Foundrié-branded products. Other affiliates operate company-owned Face Foundrié Facial Bars.
Financial Overview
Investment Range
$334,200 - $670,250
Franchise Fee (Low)
$36,000
Franchise Fee (High)
$45,000
Royalty %
7%
Marketing %
3%
Equipment Costs (Low)
$57,100
Equipment Costs (High)
$86,000
Working Capital
$75,100
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Face Foundrié Franchising L.L.C.'s financial statements for the fiscal year ended December 31, 2023, received an unqualified opinion from their independent auditor. The company reported a net income of $233,689 for 2023, a positive change from net losses in 2022 ($409,453) and 2021 ($334,259). As of December 31, 2023, the company had an accumulated member's deficit of $833,308. Cash and cash equivalents stood at $1,969,123 at the end of 2023, with $1,458,965 earmarked for gift card liability. The company also clarified that prior period financial statements for 2021 and 2022 were restated to correct errors in revenue recognition timing and to properly account for a related party operating lease, which was not previously recognized in 2022. Additionally, in 2023, Face Foundrié changed its accounting estimate for valuing pre-opening obligations, resulting in $356,642 of additional franchise fee revenue recognized that year.
Financing Details
Face Foundrié does not offer any direct or indirect financing to its franchisees. This means that Face Foundrié will not provide loans or guarantee any notes, leases, or other obligations for franchisees.
Performance Metrics
Total US Locations
36
Franchised Units
30
Corporate Units
6
Avg Square Footage
1,800
Franchising Since
2020
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Face Foundrié Franchising L.L.C. has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Face Foundrié Franchising L.L.C. has no bankruptcy history that is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Face Foundrié franchisees must provide written notice of their intent to renew. They must not be in default of their franchise agreement or any other related agreements. Franchisees will need to sign Face Foundrié's then-current franchise agreement, which may have terms and conditions materially different from their original agreement, including potentially higher or additional fees. A renewal fee must be paid, and the Facial Bar must be refurbished to meet current brand standards. Franchisees are also required to complete any necessary retraining programs, sign a general release of claims, and maintain their ownership or leasehold interest in the Facial Bar location or secure a suitable alternative.
Training & Support Program
Franchisor Assistance
Face Foundrié provides various forms of assistance to its franchisees. Before a Facial Bar opens, Face Foundrié licenses its trademarks and system for use, provides consent for the site lease/purchase, offers standard specifications for the Facial Bar's design and layout, identifies approved suppliers for products and equipment, and loans a copy of its confidential Operations Manual. Face Foundrié also provides an initial training program to the Operating Partner and Salon Manager, lasting approximately nine days in-person and four days virtually (or seven days in-person and three days virtually for estheticians). Face Foundrié may also conduct on-site inspections during construction. After the Facial Bar opens, Face Foundrié offers periodic guidance and updates to the Operations Manual, notifies franchisees of changes to approved suppliers, and administers the System Marketing Fund. Ongoing training programs are provided as deemed appropriate. Face Foundrié conducts periodic inspections to ensure compliance with brand standards and may offer additional advice and assistance, which may incur a fee. Franchisees and their Operating Partners are required to attend an annual convention if one is held. Face Foundrié also requires participation in gift certificate, gift card, loyalty, and rewards programs.
Initial Training Hours
118
Training Location
Corporate headquarters in Eden Prairie, Minnesota, affiliate-owned Face Foundrié Facial Bars in the Minneapolis, Minnesota metropolitan area, and virtually.
Ongoing Support
After opening, Face Foundrié provides ongoing guidance and updates to its Operations Manual, informing franchisees about changes in standards, specifications, and operating procedures. Franchisees are notified of any changes to the list of approved or designated suppliers. Face Foundrié or its designee administers the System Marketing Fund, which is used for brand development initiatives. Face Foundrié also offers periodic and ongoing training programs, and conducts regular inspections of the Facial Bar's operations to ensure compliance with brand standards. Additional advice, assistance, or training can be provided at the franchisee's cost. The controlling owner and Operating Partner are required to attend Face Foundrié's annual convention if held. Face Foundrié also requires franchisees to participate in all gift certificate, gift card, loyalty, and rewards programs sponsored by the brand.
Franchise Requirements
Ideal Candidate Profile
Face Foundrié seeks qualified individuals or entities to become franchisees. The ideal candidate must designate an Operating Partner, who is an individual owner holding at least 20% equity in the business. This Operating Partner must be approved by Face Foundrié, dedicate full-time effort to the Facial Bar's operation, and reside within a one-hour drive of their initial Facial Bar location. Franchisees must also appoint a separate Salon Manager for each Facial Bar, who meets Face Foundrié's qualifications and devotes full-time efforts to day-to-day supervision. Both the Operating Partner and Salon Manager must successfully complete Face Foundrié's mandatory initial training program.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
Protected
Staff Count
18
Territory Size Requirements
Each Face Foundrié territory generally contains a population of up to 40,000 individuals and typically extends a one- to three-mile radius around the Facial Bar. The exact size and scope of the territory are determined by Face Foundrié during the site confirmation process, considering factors like whether the location is in an urban or suburban area, local population, competition, and Face Foundrié's policies.
Staffing Notes
Face Foundrié franchisees must designate an Operating Partner, who is an owner, to have direct responsibility and devote full-time efforts to the Facial Bar. A separate Salon Manager must also be designated for each Facial Bar, dedicating full-time efforts to day-to-day supervision. If a Salon Manager leaves, the Operating Partner must immediately take over full-time operational management until a new qualified manager is appointed. Both the Operating Partner and Salon Manager must complete mandatory training programs. Additionally, estheticians receive a specific training program. Face Foundrié also requires franchisees to hire and train all other employees, who must pass these training programs before providing services. Company-owned locations averaged 16-20 employees on payroll in 2023, including the Salon Manager but not the owner's salary.