What is the 'Local Advertising Expenditure' for a Clean Your Dirty Face Facial Bar defined as?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
the CYDF brand or any CYDF Facial Bar.
Local Advertising
We require you to spend between 4% and 10% of your CYDF Facial Bar's Gross Sales per month on local advertising for your CYDF Facial Bar (the "Local Advertising Expenditure"). If your CYDF Facial Bar's Gross Sales are less than or equal to $300,000 as of the last day of the calendar year, an Local Advertising Expenditure requirement of 10% of Gross Sales will be imposed on your CYDF Facial Bar for the following year. For each $50,000 made in a given calendar year by your CYDF Facial Bar in excess of the Gross Sales Threshold, your Local Advertising Expenditure for the following calendar year will decrease by 1% (subject to a minimum expenditure rate of 4%). Your Local Advertising Expenditure requirement will update on the first day of every calendar year based on your CYDF Facial Bar's Gross Sales from the prior calendar year. While you are currently required to spend this amount on local advertising, we may require you to pay part or all of the Local Advertising Expenditure to us or our designee. We may approve the type of expenditures that will count towards your Local Advertising Expenditure. If you are required to make any Local Advertising Cooperative Contribution(s) through a Local Advertising Cooperative, such contributions will count toward your Local Advertising Expenditure requirement. Indirect costs you incur in managing your local advertising campaigns, such as salaries and benefits of employees administering the campaigns, will not be counted towards your Local Advertising Expenditure. Additionally, any costs you incur for advertising conducted at the premises of your CYDF Facial Bar, such as in-store materials and signage, will not be counted towards your Local Advertising Expenditure. Upon our request, you must send us, in the manner we prescribe, an accounting of your Local Advertising Expenditures during the time period(s) we specify. We may at any time, on one or more oc
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–39)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, franchisees are required to spend a percentage of their gross sales on local advertising, referred to as the "Local Advertising Expenditure." This expenditure is between 4% and 10% of the CYDF Facial Bar's Gross Sales per month.
The specific percentage required depends on the gross sales of the Clean Your Dirty Face Facial Bar. If the gross sales are $300,000 or less as of the last day of the calendar year, the Local Advertising Expenditure requirement is 10% of gross sales for the following year. For each $50,000 made in a given calendar year by your CYDF Facial Bar in excess of the Gross Sales Threshold, your Local Advertising Expenditure for the following calendar year will decrease by 1% (subject to a minimum expenditure rate of 4%). The Local Advertising Expenditure requirement updates on the first day of every calendar year based on the prior year's gross sales.
Clean Your Dirty Face retains the right to modify how the Local Advertising Expenditure is managed. While franchisees are currently required to spend the specified amount on local advertising, Clean Your Dirty Face may require franchisees to pay part or all of the Local Advertising Expenditure to them or their designee. Clean Your Dirty Face may also approve the types of expenditures that count toward the Local Advertising Expenditure. Furthermore, costs incurred for in-store advertising or indirect costs like employee salaries for managing campaigns do not count towards this expenditure. Franchisees may also be required to participate in a Local Advertising Cooperative, and contributions to this cooperative will count toward the Local Advertising Expenditure requirement.