What was the allowance for credit losses for Clean Your Dirty Face at December 31, 2023?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
ulate the expected allowance for credit losses as the Company's franchisees have remained constant since the Company's inception.
Management has determined that the allowance for credit losses is not mate
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the allowance for credit losses was $0 as of December 31, 2023. The document states that management determined this allowance was not material to the financial statements. This means Clean Your Dirty Face did not anticipate any significant losses from uncollectible accounts receivable.
For a prospective franchisee, this indicates that Clean Your Dirty Face has a history of franchisees paying their dues, and the company does not expect significant credit losses. This could be due to a rigorous franchisee selection process, effective royalty collection methods, or a generally healthy financial relationship between Clean Your Dirty Face and its franchisees.
It is important to note that this assessment is based on the company's historical experience and management's judgment. Future economic conditions or changes in the franchisee network could impact the allowance for credit losses. However, the fact that the allowance has been consistently $0 for both 2023 and 2024 suggests a stable trend.