What documents must a transferee sign to acquire a Clean Your Dirty Face franchise?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
You should read these provisions in the agreements attached to this Disclosure Document.**
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY | |---|---|---| | (a) Length of the | Section 1.C | Term of the Franchise Agreement is 5 years. | | franchise term | | | | (b) Renewal or | Section 13.A | 1 successor franchise terms of 5 years, if you meet certain | | extension of the term | | requirements. |
| PROVISION | SECTION IN FRANCHISE AGREEMENT |
|---|---|
| SUMMARY | |
| (m) Conditions for | Section 12.C Under Franchise Agreement, the following qualifications must |
| franchisor approval of | |
| transfer | be met: all monetary obligations are paid; you are not in default of any provisions of the Franchise Agreement, your lease of the Business premises or any other agreement with us; new franchise owner (and its owners and affiliates) are not in a Competitive Business (as defined below); completion of Training Program; lease permitted to be transferred; you or transferee signs our then-current Franchise Agreement and other documents, provisions of which may differ materially from those contained in the Franchise Agreement; you pay transfer fee of $25,000; you (and your owners) sign a general release and guaranty; we determine that the financial terms of the transfer will not burden your CYDF Facial Bar or jeopardize our rights; you subordinate amounts due to you; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face FDD, a transferee must sign the then-current Franchise Agreement and other documents to acquire a franchise. The FDD also states that the provisions within these documents may differ significantly from those in the original Franchise Agreement.
In addition to signing the Franchise Agreement and other documents, the transfer is contingent upon meeting several other qualifications. These include ensuring all monetary obligations are fulfilled, the current franchisee is not in default, the new owner isn't involved in a competitive business, completion of the training program, and the lease is transferable. The current franchisee must also pay a $25,000 transfer fee and sign a general release and guaranty.
Clean Your Dirty Face also needs to approve the financial terms of the transfer to ensure they do not negatively impact the business or jeopardize the franchisor's rights. Furthermore, the current franchisee must address any existing deficiencies in the CYDF Facial Bar, or the transferee must agree to upgrade, remodel, or refurbish the location, potentially requiring an escrow account for these improvements. The franchisee must also de-identify the location and comply with non-compete obligations.