factual

What is the effective date of the Clean Your Dirty Face Guaranty?

Clean_Your_Dirty_Face Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (11) all individuals and entities who will be direct or indirect owners must execute or have executed a guaranty in the form we prescribe;
  • (14) you have corrected any existing deficiencies of your Business of which we have notified you, and/or the transferee agrees to upgrade, remodel, and refurbish your Business in accordance with our then-current requirements and specifications for CYDF Facial Bars within the time period we specify following the effective date of the transfer (we will advise the transferee before the effective date of the transfer of the specific actions that it must take and the time period within which such actions must be taken) and the transferee agrees to escrow an amount we approve for payment of the required upgrade, remodel or refurbishment;

Source: Item 22 — CONTRACTS (FDD page 54)

What This Means (2025 FDD)

According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, all individuals and entities who will be direct or indirect owners must execute or have executed a guaranty in the form that Clean Your Dirty Face prescribes. The FDD states that the transferee must agree to upgrade, remodel, and refurbish the business in accordance with Clean Your Dirty Face's then-current requirements and specifications for CYDF Facial Bars within the time period they specify following the effective date of the transfer. Clean Your Dirty Face will advise the transferee before the effective date of the transfer of the specific actions that it must take and the time period within which such actions must be taken.

The effective date of the guaranty is linked to the transfer of ownership and the subsequent actions required by the transferee. This means the guaranty becomes active when the transfer of the Clean Your Dirty Face franchise is finalized and the new owner takes over operations. The transferee must also agree to escrow an amount Clean Your Dirty Face approves for payment of the required upgrade, remodel, or refurbishment.

Clean Your Dirty Face may review all information regarding the business that is given to the transferee, correct any information that they believe is inaccurate, and give the transferee copies of any reports that have been given to them or they have made regarding the business. Clean Your Dirty Face's consent to a transfer is not a representation of the fairness of the terms of any contract between the current franchisee and the transferee, a guarantee of the business's or transferee's prospects of success, or a waiver of any claims they have against the current franchisee or their right to demand the transferee's full compliance with the Franchise Agreement.

Prospective franchisees should note that the guaranty ensures that owners are held responsible for the franchise's obligations, even after a transfer. This is a common practice in franchising to protect the brand and system standards. Franchisees should seek legal counsel to fully understand the implications of the guaranty and its effective date in relation to their specific circumstances.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.