Are Clean Your Dirty Face's audit remedies in addition to other rights and remedies?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
We may at any time during your business hours, and without prior notice to you, examine your and your Business's business, bookkeeping, and accounting records, sales and income tax records and returns, and other records. You agree to cooperate fully with our representatives and independent accountants in any examination. If any examination discloses an understatement of your Business's Gross Sales, you agree to pay us the Royalty, Marketing Fund Contributions, and any other fees understated, plus interest on the understated amounts from the date originally due until the date of payment, within fifteen (15) days after receiving the examination report. Furthermore, if an examination is necessary due to your failure to furnish reports, supporting records, or other information as required, or to furnish these items on a timely basis, or if our examination reveals an understatement of Gross Sales exceeding three percent (3%) of the amount that you actually reported to us for the period examined, you agree to reimburse us for the costs of the examination, including the charges of attorneys and independent accountants and the travel expenses, room and board, and compensation of our employees. These remedies are in addition to our other remedies and rights under this Agreement and applicable law.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, the remedies available to Clean Your Dirty Face for a franchisee's understatement of gross sales are in addition to any other remedies and rights they have under the Franchise Agreement and applicable law.
Specifically, if an examination of the franchisee's records reveals an understatement of Gross Sales, the franchisee must pay Clean Your Dirty Face the underpaid Royalty, Marketing Fund Contributions, and any other fees, plus interest from the original due date until the date of payment. This payment must be made within fifteen (15) days of receiving the examination report.
Furthermore, if the audit was necessary due to the franchisee's failure to provide required reports or information on time, or if the understatement of Gross Sales exceeds three percent (3%) of the reported amount for the examined period, the franchisee must reimburse Clean Your Dirty Face for the costs of the examination. These costs include charges from attorneys and independent accountants, as well as travel expenses, room and board, and compensation for Clean Your Dirty Face's employees. This means that Clean Your Dirty Face retains all other contractual and legal rights, even while pursuing these specific financial remedies related to the audit findings.