What is the dependency between the Operating Partner's ownership and their role in the Clean Your Dirty Face franchise?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to approve the Operating Partner.
In the event that your Operating Partner ceases to own at least a twenty-five percent (25%) ownership interest and voting interest in you, or we disapprove of your Operating Partner, you must recruit a new Operating Partner within sixty (60) days of the change in ownership or disapproval and deliver to us a revised Exhibit A to accurately identify the Operating Partner for our review and approval;
- (6) You agree that the Operating Partner is authorized to deal with us on your behalf for all matters whatsoever that may arise with respect to this Agreement.
Any decision made by the Operating Partner will be final and binding on you and we will be entitled to rely solely on the decision of the Operating Partner without discussing the matter with any other party.
We will not be held liable for any actions based on any decision or actions of the Operating Partner; and
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the Operating Partner's role is closely tied to their ownership stake in the franchise. Clean Your Dirty Face reserves the right to approve the Operating Partner.
The FDD stipulates that the Operating Partner must maintain at least a 25% ownership and voting interest in the franchise. Should the Operating Partner's ownership fall below this threshold, or if Clean Your Dirty Face disapproves of the current Operating Partner, the franchisee is obligated to recruit a new Operating Partner within 60 days. This change must be reflected in a revised Exhibit A submitted to Clean Your Dirty Face for review and approval.
The Operating Partner is authorized to act on behalf of the franchisee in all matters pertaining to the Franchise Agreement, and Clean Your Dirty Face is entitled to rely solely on the Operating Partner's decisions. Clean Your Dirty Face will not be held liable for actions based on the Operating Partner's decisions or actions. This arrangement underscores the importance of the Operating Partner's role and the necessity of their continued significant ownership and approval by Clean Your Dirty Face.