For Clean Your Dirty Face, what is the purpose of concentrating purchases with one or more suppliers?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
We may concentrate purchases with one or more suppliers to obtain lower prices, advertising support and/or services for any group of CYDF Facial Bars franchised or operated by us or our affiliates. As of the Effective Date of this Agreement, we require you to purchase from our affiliates certain branded products, services, and retail merchandise that you must use in the operation of your Business and offer and sell to the customers of your Business; however, we or our affiliates have no obligation to continue supplying those products, services, and merchandise to you, and may we designate third-party suppliers for such purchases. We may also designate a single supplier for any product, service, Operating Asset, or other material, or approve a supplier only for certain products. You acknowledge and agree that we and/or our affiliates may derive revenue based on your purchases (including from charging you for products and services we or our affiliates provide to you and from promotional allowances, rebates, volume discounts and other payments, services or consideration we receive from suppliers that we designate or approve for some or all of our franchise owners). We and/or any of our affiliates may use such revenue or profit without restriction.
Approval of a 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
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, concentrating purchases with specific suppliers allows Clean Your Dirty Face to secure benefits for its franchisees and company-operated locations. These benefits include obtaining lower prices on supplies and equipment, receiving advertising support to promote the brand, and gaining access to additional services that can improve the operations of Clean Your Dirty Face Facial Bars.
Clean Your Dirty Face requires franchisees to purchase certain branded products, services, and retail merchandise from its affiliates. However, Clean Your Dirty Face is not obligated to continue supplying these items and may designate third-party suppliers in the future. Clean Your Dirty Face may also designate a single supplier for any product, service, operating asset, or other materials.
Clean Your Dirty Face, and its affiliates, may receive revenue from franchisee purchases through direct charges for products and services, as well as promotional allowances, rebates, volume discounts, and other payments from designated or approved suppliers. This revenue can be used without restriction by Clean Your Dirty Face. Approval of suppliers is contingent on factors such as product quality, pricing, consistency, reliability, financial stability, labor and customer relations, delivery frequency, purchase concentration, and service standards. These approvals can be temporary while Clean Your Dirty Face evaluates the supplier.