What is the definition of 'Agreement' in the context of the Clean Your Dirty Face Guaranty?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
first set forth below.
INDIVIDUAL: (signature) _, an individual aprovided above) (d/b/a) Sign:Name:
EXHIBIT D
TO THE FRANCHISE AGREEMENT
GUARANTY AND ASSUMPTION OF OBLIGATIONS
THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS ("Guaranty") is given by the persons indicated below who have executed this Guaranty (each a "Guarantor") to be effective as of the Effective Date of the Agreement (defined below). Capitalized terms that are used but not defined in this Guaranty will have the meanings ascribed to them in the Agreement.
In consideration of, and as an inducement to, the execution of that certain Franchise Agreement (as amended, modified, restated or supplemented from time to time, the "Agreement") by Mud Franchising, LLC (the "Franchisor"), and _______ ("Franchisee"), each of the undersigned hereby personally and unconditionally (a) guarantees to Franchisor, and its successor and assigns, for the term of the Agreement and as provided in the Agreement, that Franchisee shall punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement and (b) agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Agreement, both monetary obligations and obliga
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the term "Agreement" within the Guaranty refers to the specific Franchise Agreement that the franchisee enters into with Mud Franchising, LLC. The Guaranty, outlined in Exhibit D of the Franchise Agreement, is effective as of the agreement's effective date.
This agreement is significant because it stipulates that the guarantor is responsible for ensuring the franchisee adheres to all the terms and conditions outlined in the Franchise Agreement. This includes both monetary obligations, such as paying fees, and non-monetary obligations, such as following operational standards. The guarantor is essentially vouching for the franchisee's ability to fulfill their contractual duties.
For a prospective Clean Your Dirty Face franchisee, understanding the Guaranty's implications is crucial. If the franchisee is an entity (corporation, LLC, or partnership), the franchisor requires owners to execute a personal guaranty, making them personally liable for the franchise's obligations. This ensures that Clean Your Dirty Face has recourse to the personal assets of the franchisee's owners if the business fails to meet its obligations under the Franchise Agreement.