What is the duration of the Clean Your Dirty Face franchise agreement term?
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 franchise agreement term begins on the effective date and lasts for five years, unless terminated earlier as specified in the agreement. The specific location of the Clean Your Dirty Face facial bar, referred to as the Premises, is identified on Exhibit B. If the Premises hasn't been determined by the effective date, it will be selected according to Section 2.A, ensuring it's within the geographical area outlined in Exhibit B.
This five-year term is a relatively short duration compared to the typical franchise agreement, which often spans 10 to 20 years. This shorter term could offer some flexibility for franchisees, allowing them to reassess their business strategy or exit the franchise with less long-term commitment. However, it also means that franchisees will need to focus on quickly establishing and growing their business within that timeframe to maximize their return on investment.
At the end of the initial term, franchisees may have the option to seek a successor franchise agreement, but this is contingent upon meeting certain conditions. These conditions include compliance with the existing agreement, adherence to system standards, potential remodeling or relocation of the business, signing the then-current franchise agreement (which may have different terms), and paying a successor franchise fee of $5,000. Failing to meet these conditions gives Clean Your Dirty Face the right to deny a successor franchise.
Prospective franchisees should carefully consider the implications of the five-year term and the conditions for renewal. They should also inquire about the typical renewal rates and the potential for changes in the franchise agreement at the time of renewal. Understanding these factors will help them make an informed decision about investing in a Clean Your Dirty Face franchise.