What is the format that Clean Your Dirty Face must use to generate an income statement?
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.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, franchisees must generate an income statement each month in a format prescribed by the franchisor. This includes using a standard chart of accounts also designated by Clean Your Dirty Face. The franchisee must provide these statements to Clean Your Dirty Face upon request.
This requirement ensures that Clean Your Dirty Face can effectively monitor the financial performance of each franchise location and maintain consistency across the brand. By mandating a specific format and chart of accounts, Clean Your Dirty Face can easily compare financial data between different franchise locations and identify trends or potential issues.
For a prospective franchisee, this means they will need to adhere to Clean Your Dirty Face's accounting and reporting standards. They may need to invest in specific accounting software or services to comply with these requirements. It is important for potential franchisees to understand the time and resources required to meet these reporting obligations and to factor these costs into their financial projections. Franchisees should ask Clean Your Dirty Face for a sample income statement and chart of accounts to fully understand these requirements.