factual

Does Clean Your Dirty Face provide franchisees with specific criteria for approving suppliers?

Clean_Your_Dirty_Face Franchise · 2025 FDD

Answer from 2025 FDD Document

We also have developed or may develop standards and specifications for suppliers and distributors of certain products and services, including by designating certain suppliers and distributors as an approved supplier, or the exclusive supplier of certain products or services. You must purchase the specified products and services only from the suppliers designated by us. If we have any approved any designed supplier for any product or service then must purchase such product or service from distributors and suppliers that meet our standards and specifications. Our affiliates or we may be the designated, approved or sole supplier or distributor, or otherwise 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.

Collectively, the purchases you obtain according to our standards and specifications or from approved or designated suppliers represent approximately 90% of your total purchases to establish your CYDF Facial Bar and up to 90% of your total purchases to operate your CYDF Facial Bar.

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, while the company has developed standards and specifications for suppliers and distributors, the specific criteria for approving suppliers are not currently issued to franchisees. Clean Your Dirty Face has the right to inspect a proposed supplier's facilities and require product samples for testing, potentially at the franchisee's expense, including travel and inspection costs. The franchisee will be notified in writing of the approval or disapproval, but a failure to respond within 60 days is deemed a denial. Clean Your Dirty Face may also elect to withhold approval.

Clean Your Dirty Face is likely to reject a request for a new supplier if an exclusive supplier has already been designated for the item. Approved suppliers may be re-inspected periodically, and approval can be revoked if they no longer meet Clean Your Dirty Face's criteria. The document also mentions that Clean Your Dirty Face may charge suppliers a royalty for the right to manufacture products for use in Clean Your Dirty Face Facial Bars. Franchisees are required to purchase beauty products, salon chairs, furniture, and wallpaper from suppliers designated or approved by Clean Your Dirty Face. Krishna Chicago is the sole supplier of certain Clean Your Dirty Face-branded products and other supplies.

These purchases from approved or designated suppliers represent approximately 90% of the total purchases required to establish a Clean Your Dirty Face location and up to 90% of the total purchases to operate the franchise. If a franchisee wishes to purchase from a non-approved supplier, they must submit a written request for approval. This process underscores the importance of adhering to Clean Your Dirty Face's established supply chain and the potential costs and delays associated with seeking alternative suppliers.

Prospective franchisees should inquire about the specific standards and specifications used to evaluate suppliers, even though they are not explicitly provided in the FDD. Understanding these criteria can help franchisees anticipate potential supply chain issues and assess the flexibility they have in sourcing products and services. It is also important to understand the potential costs associated with getting a supplier approved.

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.