Who pays for the audit of the Clean Your Dirty Face Marketing Fund?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
We will prepare an annual, unaudited statement of each Marketing Fund's collections and expenses and provide you a statement of income and expense for the Marketing Fund on your written request. We may have the Marketing Fund audited annually, at the Marketing Fund's expense, by an independent certified public accountant.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the Marketing Fund bears the expense of its annual audit, should Clean Your Dirty Face choose to have one conducted. Clean Your Dirty Face retains the option to have the Marketing Fund audited annually by an independent certified public accountant.
For a prospective franchisee, this means that the funds contributed to the Marketing Fund, which are 1% of the Business's Gross Sales, may be used to cover the costs of an audit. This is a fairly standard practice in franchising, as marketing funds are typically used for the benefit of the entire franchise system and should be accounted for appropriately.
It is important to note that Clean Your Dirty Face is not obligated to conduct an audit, but if they do, the cost will be covered by the Marketing Fund. Franchisees should be aware of this potential expense when evaluating the overall costs and benefits of joining the Clean Your Dirty Face system.