What financial statement is Clean Your Dirty Face required to generate monthly?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
Each month, you agree to generate, in the manner and format that we may prescribe from time to time, an income statement (including a standard chart of the accounts designated by us) for your Business covering the most recently completed month. On our request, you agree to send us such statements. You also agree to give us in the manner and format that we prescribe from time to time:
- (a) on or before the Royalty payment, a report on your Business's Gross Sales during the preceding calendar month;
- within fifteen (15) days after the end of each calendar month, the operating (b) statements, financial statements, statistical reports and other information we request regarding your Business covering the preceding month;
- within the time limits specified in the Operations Manual, such other periodic operating statements, financial statements, statistical reports and other information we request regarding you and your Business;
- by March 15th of each year, annual profit and loss and source and use of funds statements and a balance sheet for your Business as of the end of the prior calendar year; and
- within ten (10) days after our request, exact copies of federal and state income tax returns, sales tax returns, and any other forms, records, books, and other information we may periodically require relating to you and your Business.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, as a franchisee, you are required to generate an income statement each month. This income statement must adhere to the format and manner prescribed by Clean Your Dirty Face, including a standard chart of accounts designated by them. This statement should cover the most recently completed month of business operations.
In addition to the monthly income statement, Clean Your Dirty Face also requires franchisees to submit a report on the business's Gross Sales for the preceding calendar month, due on or before the royalty payment. Franchisees must also provide operating statements, financial statements, and statistical reports within fifteen (15) days after each calendar month's end, along with any other information Clean Your Dirty Face requests regarding the business for the preceding month.
Furthermore, Clean Your Dirty Face requires annual financial documents, including profit and loss statements, statements of source and use of funds, and a balance sheet for the business as of the end of the prior calendar year, all due by March 15th of each year. Franchisees must also provide copies of federal and state income tax returns, sales tax returns, and any other forms or records Clean Your Dirty Face may request within ten (10) days of the request. Clean Your Dirty Face also has the right to access the franchisee's computer system at all times to collect and retain data concerning the business.