When does Clean Your Dirty Face recognize support service fees from its franchisees?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company recognizes support service fees from its franchisees for training and other support service arrangements. Such fees are recognized at the point services have been provided.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the company recognizes support service fees from its franchisees for training and other support service arrangements. These fees are recognized at the point when the services have been provided to the franchisee.
This means that Clean Your Dirty Face does not recognize the revenue from these fees until the training or support has actually been delivered. This accounting practice aligns the revenue recognition with the actual provision of services, which is a common and conservative approach.
For a prospective Clean Your Dirty Face franchisee, this indicates that the support service fees they pay will be accounted for as revenue by the franchisor only after the services are rendered. This policy provides transparency in how the franchisor accounts for these fees and ensures that revenue is not prematurely recognized before the franchisee receives the promised support.