Can Clean Your Dirty Face assign its option to purchase my Clean Your Dirty Face business to another party?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the option to purchase your Business and the Premises (if you or one of your affiliates owns the Premises) upon the occurrence of a Termination Event (as defined below). We may exercise this option by giving you written notice within thirty (30) days after the date of the Termination Event. We have the unrestricted right to assign this option to purchase. If we purchase your Business and/or the Premises, we are entitled to all customary warranties and representations in our asset purchase, including representations and warranties as to ownership and condition of and title to assets; liens and encumbrances on assets; validity of contracts and agreements; and liabilities affecting the assets, contingent or otherwise.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, Clean Your Dirty Face has the right to assign its option to purchase your business to another party. Specifically, Clean Your Dirty Face retains the unrestricted right to assign this option. This means that if a Termination Event occurs, giving Clean Your Dirty Face the option to buy your business, they are not limited to exercising that option themselves.
This clause provides Clean Your Dirty Face with flexibility in how they handle a termination event. They could choose to have an affiliate or another third party take over the business rather than directly managing it themselves. For a franchisee, this means that if your franchise faces termination and Clean Your Dirty Face decides to exercise its purchase option, the actual buyer of your business could be Clean Your Dirty Face or another entity designated by them.
It is important for a prospective franchisee to understand that Clean Your Dirty Face's option to purchase your business can be transferred to another party without your consent. This could impact the negotiation process and the terms of the sale if a third party becomes involved. Franchisees should seek legal counsel to fully understand the implications of this clause.