What specific fees are outlined in the Clean Your Dirty Face franchise agreement?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
or bail-outs for which you qualify and that are made available to small businesses as an economic stimulus, if necessary to comply with your obligations under this Agreement.
3. FEES.
3.A. INITIAL FRANCHISE FEE.
You agree to pay us a non-recurring initial franchise fee of Fifty Thousand Dollars ($50,000) when you sign this Agreement (the "Initial Franchise Fee"). The Initial Franchise Fee is due and fully earned by us when you sign this Agreement. You must pay us the Initial Franchise Fee by wire transfer of immediately available funds to an account we designate, or by any other method we specify. The Initial Franchise Fee is uniform and is not refundable in whole or in part under any circumstances.
3.B. ROYALTY FEE.
You agree to pay us a monthly royalty fee (the "Royalty") equal to five percent (5%) of your Business's Gross Sales during the preceding month. We reserve the right, upon five (5) business days' notice to you, to require you to pay the Royalty at any other increments we choose, which may include weekly.
For purposes of this Agreement, "Gross Sales" means all revenue or consideration that you receive, directly or indirectly, from operating your Business, including, all revenue or consideration you receive at or away from the Premises, and whether from cash, check, credit and
debit card, barter exchange, trade credit, or other credit transactions. Gross Sales includes the proceeds of any business interruption insurance or similar insurance. If we authorize or require participation in online group-bought deals (e.g., Groupon or Living Social), gift certificate and/or gift card programs, the payments you receive for those online group-bought deals, gift certificates or gift cards shall be included in Gross Sales in accordance with our then-current guidelines for calculating Gross Sales, which may include calculating such amounts, at our option, as either (i) the purchasing value of such the certificate, card or deal when it is redeemed at your Business, or (ii) the amount of the payment you received for such certificate, card or deal at the time of its sale. Gross Sal
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, there are two specific fees outlined in the franchise agreement: the Initial Franchise Fee and the Royalty Fee.
The Initial Franchise Fee is a non-recurring fee of $50,000 that must be paid when signing the agreement. This fee is considered fully earned by Clean Your Dirty Face upon signing and is non-refundable under any circumstances. Payment must be made via wire transfer or another method specified by the franchisor. For franchisees pursuing a multi-unit development, an initial franchise fee of $50,000 multiplied by the number of additional Clean Your Dirty Face Facial Bars is required concurrently with the execution of the Multi-Unit Rider to Franchise Agreement.
The Royalty Fee is an ongoing monthly fee, calculated as five percent (5%) of the business's Gross Sales during the preceding month. Clean Your Dirty Face retains the right to change the payment schedule to any other increment, including weekly, with five business days' notice. Gross Sales includes all revenue received from operating the business, whether in cash, credit, or other forms, and also includes proceeds from business interruption insurance. Sales taxes collected and remitted to the appropriate authority are excluded from Gross Sales.
The franchise agreement also mentions a POS System Fee, but the specific amount or calculation for this fee is not detailed in the provided excerpt.