Under what conditions can Clean Your Dirty Face change the royalty payment increment?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, Clean Your Dirty Face has the right to change the royalty payment increment with a short notice period. The standard royalty fee is five percent (5%) of the Business's Gross Sales during the preceding month. However, Clean Your Dirty Face reserves the right to change the payment schedule.
Clean Your Dirty Face can require franchisees to pay royalties at different increments, including weekly payments. To do so, Clean Your Dirty Face must provide franchisees with five (5) business days' notice before implementing the change.
This clause provides Clean Your Dirty Face with flexibility in managing cash flow and potentially responding to economic conditions. For a franchisee, this means they need to be prepared to adjust their payment schedule on short notice, which could impact their financial planning and cash management.