Does the Clean Your Dirty Face agreement specify who pays the costs of arbitration?

According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, the prevailing party in any arbitration or litigation is entitled to recover costs and expenses from the other party. This includes damages, court costs, and reasonable attorney's fees incurred while enforcing the Franchise Agreement. This clause aims to ensure that the party who wins a dispute is not financially burdened by the legal process.

For a prospective Clean Your Dirty Face franchisee, this means that if they are involved in a dispute with the franchisor that goes to arbitration or litigation, the franchisee could be responsible for covering Clean Your Dirty Face's legal costs if Clean Your Dirty Face prevails. Conversely, if the franchisee wins, Clean Your Dirty Face would be responsible for the franchisee's legal costs. This creates a financial risk for both parties, depending on the outcome of any legal proceedings.

It is important to note that the ability to recover costs and attorney's fees applies to both arbitration and litigation. This encourages both parties to act reasonably and in good faith during any dispute, as the potential financial consequences of losing could be significant. Franchisees should carefully consider this clause and factor in potential legal costs when evaluating the overall financial risks and benefits of investing in a Clean Your Dirty Face franchise.