What is Krishna Chicago's role in supplying Clean Your Dirty Face franchisees?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
e be a party to these transactions. Currently, (i) you must purchase beauty products, salon chairs, furniture, and wallpaper from suppliers we designate or approve; and (ii) Krishna Chicago, is the sole supplier of certain CYDF-branded products and other supplies that you must use and offer for sale at your CYDF Facial Bar. We may require you to hire an architect or contractor we designate.
Approval of a product or supplier may be conditioned on requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations, customer relations, frequency of delivery, concentration of purchases, standards of service (including prompt attention to complaints), and other criteria. Our specific criteria for approving suppliers are not currently issued to franchisees.
If you would like to purchase any products, services, Operating Assets or materials from a supplier that we have not yet approved (if such products, services, Operating Assets or materials are required to be purchased from designated or approved suppliers), you must submit to us a written request for approval of the proposed product and/or supplier before using or purchasing any item. We have the right to inspect the proposed supplier's facilities, and to require product samples from the proposed supplier to be delivered at our option either directly to us or to a third party we designate for testing. We may require you to reimburse us for our direct costs and expenses incurred for testing such product or supplier, including travel costs and costs of inspection(s). We will notify you in writing of the approval or disapproval of the proposed supplier within a reasonable time after completion of the investigation of the proposed supplier. If we fail to respond within 60 days, your request will be deemed denied. We may elect to withhold approval of the supplier. We are likely to reject your request for a new supplier without conducting any investigation if we already have designated an exclusive supplier for the item proposed to be offered by the new supplier. We may periodically re-inspect the facilities and products of any approved supplier and may revoke our approval if the supplier does not continue to meet any of our criteria. We also may charge suppliers a royalty for the right to manufacture products for use in CYDF Facial Bars.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, Krishna Chicago serves as the sole supplier for specific Clean Your Dirty Face-branded products and other supplies that franchisees are required to use and offer for sale at their facial bars. In the fiscal year 2024, Krishna Chicago generated revenue of $709,900 from sales to Clean Your Dirty Face franchisees.
This arrangement means that franchisees do not have the freedom to choose their own suppliers for these branded products and must purchase them directly from Krishna Chicago. This ensures consistency in product quality and branding across all Clean Your Dirty Face locations. However, it also means franchisees are dependent on Krishna Chicago for these essential supplies and cannot negotiate pricing with alternative suppliers.
It is important to note that one of the franchisor's officers has ownership in Krishna Chicago, which could present a potential conflict of interest. While the FDD states that Clean Your Dirty Face did not receive any revenue from sales to franchisees in 2024, it also mentions that in the future, Clean Your Dirty Face or its affiliates may enter into agreements with third-party suppliers (including Krishna Chicago), under which they may receive revenue, rebate, or other material considerations based on franchisee purchases. Prospective franchisees should consider this relationship and its potential impact on supply costs and product availability.
Franchisees are generally required to purchase approximately 90% of their total purchases to establish their Clean Your Dirty Face Facial Bar and up to 90% of their total purchases to operate their Clean Your Dirty Face Facial Bar from approved or designated suppliers. If a franchisee wishes to use a different supplier, they must seek approval from Clean Your Dirty Face, which may involve inspections and testing at the franchisee's expense. Clean Your Dirty Face may reject a new supplier without investigation if an exclusive supplier is already designated.