factual

What prepaid expenses are included in the estimate for a Clean Your Dirty Face Facial Bar?

Clean_Your_Dirty_Face Franchise · 2025 FDD

Answer from 2025 FDD Document

local taxes and other factors. This estimate also includes the cost of the Computer System and three months of POS System Fees.

    1. This estimate includes utilities include gas service, electric service and other utilities as you might need to operate your CYDF Facial Bar. Utility companies may also require you to place a deposit before installing telephone, gas, electricity and related utility services. These deposits may be refundable in accordance with the agreements made with the utility companies. You may also be required to pay a security deposit under your lease agreement, which may be refundable under the terms of that lease agreement. You will also be required to incur other prepaid expenses, such as for business licenses and permitting. This estimate also includes fees for legal (e.g., franchise documentation review) and start-up costs associated with the franchisee's new corporate entity.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT FOR A CYDF FACIAL BAR (FDD pages 16–19)

What This Means (2025 FDD)

According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the estimated initial investment includes several prepaid expenses. These include three months of POS system fees, which are bundled with the cost of the computer system and furniture and fixtures, estimated between $10,347 and $21,347. The estimate also accounts for prepaid expenses related to utilities, such as gas and electric service, and other utilities necessary to operate a Clean Your Dirty Face Facial Bar. Utility companies may require deposits before installing these services, and these deposits may be refundable.

Additionally, the initial investment covers prepaid expenses for business licenses and permitting, as well as fees for legal services, such as franchise documentation review, and start-up costs associated with establishing the franchisee's new corporate entity. The costs for utilities, security deposits, business licenses, and professional fees are estimated to range from $2,000 to $5,000.

Prospective franchisees should note that the FDD also mentions the potential need for a security deposit under the lease agreement, which may also be refundable. Understanding the specific prepaid expenses and their potential refundability is crucial for managing the initial investment required to open a Clean Your Dirty Face franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.