Can Clean Your Dirty Face request an accounting of a franchisee's Local Advertising Expenditures?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
re located in your market area, we may require you to participate in a collective advertisement with those other CYDF Facial Bars and to pay your share of the cost of that collective advertisement.
Every month, you will be required to spend between 4% and 10% of your Business's Gross Sales to advertise and promote your Business in its local geographical area (the "Local Advertising Expenditure"). If your Business' Gross Sales are less than or equal to $300,000 as of the last day of the calendar year (the "Gross Sales Threshold"), a Local Advertising Expenditure requirement of 10% of Gross Sales will be imposed on your Business for the following calendar year. For every $50,000 made in a given calendar year by your Business in excess of the Gross Sales Threshold, your Local Advertising Expenditure for the following calendar year will decrease by 1%, effective the first day of such subsequent calendar year (subject to a minimum Local Advertising Expenditure requirement of 4% of Gross Sales per month). Your Local Advertising Expenditure requirement will update on the first day of every calendar year based on your Business' Gross Sales from the prior calendar year. You may not reduce your Local Advertising Expenditure without prior written approval from us.
We reserve the right to approve the type of expenditure that will count towards your Local Advertising Expenditure. Any Local Advertising Cooperative Contribution(s) you are required to make through a Local Advertising Cooperative will count toward your Local Advertising Expenditure requirement. Indirect costs you incur in managing your local advertising campaigns, such as salaries and benefits of employees administering the campaigns, will not be counted towards your Local Advertising Expenditure. Additionally, any costs you incur for advertising conducted at the Premises, such as in-store materials and signage, will not be counted towards your Local Advertising Expenditure. On our request, you agree to send us, in the manner we prescribe, an accounting of your Local Advertising Expenditures during the preceding months.
We reserve the right to require you to pay part or all of the Local Advertising Expenditure to us or our designee.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, franchisees are required to spend a percentage of their business's gross sales on local advertising. This expenditure must fall between 4% and 10% of gross sales each month. The specific percentage depends on the business's gross sales from the previous calendar year; a higher sales volume can reduce the required percentage, but it cannot go below 4%.
Clean Your Dirty Face retains the right to approve the types of expenditures that count toward a franchisee's local advertising obligations. Certain indirect costs, like employee salaries for managing campaigns, and in-store advertising costs, such as signage, do not count toward this requirement.
Importantly, Clean Your Dirty Face can request an accounting of a franchisee's local advertising expenditures. Franchisees must provide this accounting in the manner prescribed by Clean Your Dirty Face. Clean Your Dirty Face also reserves the right to have franchisees pay the local advertising expenditure to them or their designee, and they can change or cease collecting this expenditure at any time.