What triggers the Non-Compliance Fee for a Clean Your Dirty Face franchise, and how is it payable?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
| Non-Compliance Fee | $500 per occurrence | As incurred | If you are in default of your Franchise Agreement, we may charge you a non-compliance fee in the amount of $500 per occurrence. The non-compliance fee is payable to us in the same manner as Royalty payment, and our charging of the non-compliance fee is not a waiver of any of our other rights and remedies under your Franchise Agreement. |
Explanatory Notes:
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- You must pay the Royalty, the Marketing Fund Contribution and other amounts due under the Franchise Agreement as we periodically prescribe. Currently, we require all payments to be made through an electronic funds transfer system that allows us to debit a business account you designate for all amounts you owe us on their due dates or the next business day if the due date is a national holiday or a weekend day. You must ensure that funds are available in your designated account to cover our withdrawals. If the amounts that we debit from your account are greater than the amounts you actually owe us, we will credit the excess against the amounts we otherwise would debit from your CYDF Facial Bar account on the next payment due date. We may require you to make payments through any other method at any time, and you must comply with our payment instructions.
Source: Item 6 — OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, a Non-Compliance Fee of $500 per occurrence may be charged if a franchisee is in default of their Franchise Agreement. This fee is payable to Clean Your Dirty Face in the same manner as Royalty payments.
The Non-Compliance Fee serves as a financial penalty for failing to adhere to the terms outlined in the Franchise Agreement. It is important to note that the imposition of this fee does not waive any other rights or remedies that Clean Your Dirty Face may have under the Franchise Agreement. This means that in addition to the fee, Clean Your Dirty Face can pursue other actions to address the default.
The FDD specifies that all payments, including the Non-Compliance Fee, are typically made through an electronic funds transfer system. Clean Your Dirty Face will debit a designated business account for all amounts owed on their due dates. Franchisees must ensure sufficient funds are available in their account to cover these withdrawals. While electronic funds transfer is the standard method, Clean Your Dirty Face reserves the right to require payments through any other method at any time, and franchisees must comply with these payment instructions.