What was the amount of revenue Clean Your Dirty Face received from franchise fees in 2024?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
06,990 | $ | 1,325,718 |
Statements of Income For the Years Ended December 31, 2024, 2023, and 2022
| 2024 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Revenue | |||||
| Franchise fees | $ 475,000 | $ | 500,000 | $ 387,002 | |
| Royalties |
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 revenue the company received from franchise fees in 2024 was $475,000. This is a decrease compared to 2023, when franchise fees totaled $500,000, but an increase compared to 2022, when they totaled $387,002. This revenue represents a significant portion of Clean Your Dirty Face's total revenue, highlighting the importance of franchise sales to the company's financial performance.
For a prospective franchisee, this indicates the financial health and stability of Clean Your Dirty Face as a franchisor. Consistent revenue from franchise fees suggests that the company is actively expanding and attracting new franchisees. However, the decrease in franchise fees from 2023 to 2024 could be a point of inquiry for potential franchisees, as it may reflect changes in the rate of franchise sales or other market factors.
It's important to note that franchise fee revenue is typically recognized when the pre-opening services are performed and the location has opened. This means that the reported revenue reflects fees from franchises that have actually commenced operations, rather than just signed agreements. Additionally, Clean Your Dirty Face also collects royalties and provides support services, which contribute to their overall revenue stream. Understanding the different revenue streams of the franchisor can provide a more comprehensive view of their financial stability and long-term prospects.