Does Clean Your Dirty Face have the ability to modify purchase arrangements with suppliers at any time?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
eements, Material Benefits and Revenue**
We have negotiated purchase arrangementsfor the benefit of CYDF Facial Bar franchisees, with manufacturers and suppliers of certain beauty products and the salon chairs, including pricing terms. We may modify our purchase arrangements with suppliers at any time and enter into or terminate any purchase arrangements at any time. You may in the future be required to purchase items at a price or on other terms we have negotiated in advance.
In the fiscal year 2024, (i) we did not receive any revenue from sale goods and services to CYDF Facial Bar franchisees, and (ii) Krishna Chicago received revenue of $709,900 from sale of goods and services to CYDF Facial Bar franchisees. Neither we nor any of our affiliates receive any revenue, rebate or other material considerations from third-party suppliers based on their sale of goods and services to CYDF Facial Bar franchisees. However, in the future, we and/or our affiliates may enter into agreements with third-party suppliers, under which we or our affiliates may receive revenue, rebate or other material considerat
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, Clean Your Dirty Face retains the right to modify purchase arrangements with suppliers at any time. This includes the ability to enter into or terminate any purchase arrangements. Clean Your Dirty Face may require franchisees to purchase items at prices or terms negotiated in advance.
This flexibility allows Clean Your Dirty Face to adapt to market changes, potentially securing better pricing or terms for franchisees. However, it also means that franchisees may face fluctuating costs or be required to switch suppliers based on Clean Your Dirty Face's decisions. Franchisees should stay informed about any changes to these arrangements to manage their operational costs effectively.
In 2024, Krishna Chicago, received revenue of $709,900 from the sale of goods and services to Clean Your Dirty Face franchisees. While Clean Your Dirty Face states that neither they nor their affiliates currently receive revenue, rebates, or other material considerations from third-party suppliers based on sales to franchisees, they retain the right to enter into such agreements in the future. This could create additional revenue streams for Clean Your Dirty Face based on franchisee purchases.