What is the purpose of the National Marketing Fund for Clean Your Dirty Face?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
rials from us or our affiliates.
National Marketing Fund
We have established a national advertising and marketing fund (the "Marketing Fund") to promote the Marks and CYDF Facial Bars for the advertising, marketing, and public relations programs and materials we deem appropriate that will be used nationally, regionally, or locally in our franchise owners' markets. You must contribute to the Marketing Fund, an amount equal to 1% your Gross Sales during the preceding month (your "Marketing Fund Contribution"). We may,
upon five (5) business days' notice to you, to increase the Marketing Fund Contribution to 2% of your CYDF Facial Bar's Gross Sales. We may require you to pay the Marketing Fund Contribution at any other increments we choose, which may include weekly, with 5 days prior notice. CYDF Facial Bars owned by us or our affiliates may, but are not required to, contribute to the Marketing Fund at the same rate as franchised CYDF Facial Bars.
We will direct all programs that the Marketing Fund finances, with sole control over the creative concepts, materials, and endorsements used and their geographic market, media placement and allocation. The Marketing Fund may pay for preparing and producing video, audio, and written materials and electronic media; developing, implementing, and maintaining Franchise System Websites or related websites that promote CYDF Facial Bars; developing and maintaining application software designed to run on computers and similar devices, including tablets, smartphones and other mobile devices, as well as any evolutions of such devices; administering online advertising and marketing campaigns (including search engine, social media, email, and display ad campaigns); administering regional and multi-regional marketing and advertising programs, including purchasing trade journal, direct mail, and other media advertising; using advertising, promotion, and marketing agencies and other advisors to provide assistance; supporting public relations, market research, and other advertising, promotion, and marketing activities; and/or related strategies. During the fiscal year ended December 31, 2024, the Marketing Fund had expenditures as follows: 35% for media production, 35% for media placement, and 30% for administrative expenses.
Although we will try to use Marketing Fund in a manner that will benefit all CYDF Facial Bars, we cannot ensure that the Marketing Fund's expenditures for any specific geographic area will be proportionate to the Marketing Fund Contributions of contributors in that geographic area.
We will account for the Marketing Fund separately from our other funds. We may use the Marketing Fund to pay the reasonable salaries and benefits of personnel who manage and administer that Marketing Fund; other administrative costs;
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, the Marketing Fund is designed to promote the Clean Your Dirty Face brand and its Facial Bars through advertising, marketing, and public relations programs and materials. These programs and materials are intended for use nationally, regionally, or locally in franchise owners' markets. Franchisees are required to contribute to this fund, with the contribution amount being 1% of their Gross Sales during the preceding month. However, Clean Your Dirty Face retains the right to increase this contribution to 2% with five business days' notice.
The Marketing Fund is managed by Clean Your Dirty Face, which has sole control over the creative concepts, materials, endorsements, geographic market, media placement, and allocation of the fund's resources. The fund may be used to cover various expenses, including the preparation and production of video, audio, written, and electronic media; the development and maintenance of franchise system websites; the creation and maintenance of application software for computers and mobile devices; and the administration of online advertising and marketing campaigns. It can also be used for regional and multi-regional marketing programs, public relations, market research, and other related activities.
During the fiscal year ended December 31, 2024, the Marketing Fund's expenditures were allocated as follows: 35% for media production, 35% for media placement, and 30% for administrative expenses. While Clean Your Dirty Face aims to use the Marketing Fund in a way that benefits all CYDF Facial Bars, it cannot guarantee that expenditures in any specific geographic area will be proportionate to the contributions from that area. The franchisor will provide an annual, unaudited statement of the Marketing Fund's collections and expenses to franchisees upon written request and may have the fund audited annually by an independent certified public accountant at the Marketing Fund's expense.
Clean Your Dirty Face can defer, reduce, or suspend Marketing Fund contributions and operations, or even terminate the fund, providing written notice to franchisees. If the Marketing Fund is terminated, any unspent monies will be distributed to franchise owners, Clean Your Dirty Face, and its affiliates in proportion to their contributions over the preceding 12-month period. The franchisor clarifies that, other than administering the Marketing Fund, it has no obligation to market or advertise the Clean Your Dirty Face brand or any individual Clean Your Dirty Face Facial Bar.