What is the dependency between the Effective Date and the Premises determination for a Clean Your Dirty Face franchise?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to this Agreement's terms, we grant you a franchise to operate a CYDF Facial Bar ("your Business") at the specific address and location identified on Exhibit B (the "Premises"). We further license you the right to use the Franchise System and the Marks to operate your Business.
The term of this Agreement begins on the Effective Date and expires five (5) years from that date, unless sooner terminated as provided herein. If the Premises has not been determined as of the Effective Date, the Premises will be selected in accordance with Section 2.A, provided that the Premises is located within the geographical area set forth on Exhibit B.
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 of the franchise agreement begins on the Effective Date and lasts for five years, unless terminated earlier. The location of the Clean Your Dirty Face facial bar, referred to as the Premises, is specified on Exhibit B of the franchise agreement. However, if the Premises has not been determined by the Effective Date, the franchise agreement stipulates that the location will be selected according to Section 2.A, ensuring it is within the geographical area outlined on Exhibit B.
This means that the Effective Date marks the start of the franchise term, regardless of whether the Premises has been finalized. If the location is not yet determined, the franchisee must work with Clean Your Dirty Face to select a location that meets the criteria specified in the franchise agreement. This introduces a period of uncertainty for the franchisee, as they are bound by the agreement from the Effective Date but may not yet have a physical location to operate.
Clean Your Dirty Face can terminate the Franchise Agreement if the franchisee does not receive written approval of the proposed site and lease within sixty days of the Effective Date. Also, Clean Your Dirty Face can terminate the agreement if the business does not open within 365 days of the Effective Date. This clause highlights the importance of promptly securing a suitable location and lease agreement to avoid potential termination of the franchise agreement. Prospective franchisees should carefully consider the implications of this dependency and ensure they have a clear plan for site selection and lease negotiation before signing the franchise agreement.