When is the audit fee due for a Clean Your Dirty Face franchise?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
| NAME OF FEE 1 | AMOUNT | DUE DATE | REMARKS 2 |
|---|---|---|---|
| Audit | (i) Understated amounts and applicable interest, plus (ii) reimbursement of our actual audit fees and related expenses | Within 15 days after receiving the audit report | Due if you fail to furnish any reports we require or understate Gross Sales3 by more than 3%. |
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, an audit fee is due within 15 days after a franchisee receives the audit report. This fee is incurred if a franchisee fails to furnish required reports or understates Gross Sales by more than 3%.
The audit fee covers two components: first, the understated amounts and applicable interest resulting from the reporting error, and second, reimbursement of Clean Your Dirty Face's actual audit fees and related expenses. This means franchisees could face significant costs beyond the initial understated sales figures, including covering the expenses Clean Your Dirty Face incurs to conduct the audit.
This policy incentivizes accurate and timely reporting of financial information. Franchisees should ensure meticulous record-keeping and transparent reporting to avoid triggering an audit and the associated fees. Failing to do so can result in unexpected financial burdens and potential disputes with Clean Your Dirty Face.