Can Clean Your Dirty Face exclude certain assets from the purchase of my Clean Your Dirty Face business?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
If we purchase your Business upon a Termination Event, the purchase price for your Business and the Premises will be their reasonable fair market value, provided that these items will not include any value for the rights granted by this Agreement, any goodwill attributable to our Marks, brand image, and other intellectual property, or any participation in the network of CYDF Facial Bars. We may exclude from the assets purchased any Operating Assets and supplies that are not reasonably necessary (in function or quality) to your Business's operation or that we have not approved as meeting System Standards, and the purchase price will reflect these exclusions.
If we and you cannot agree on fair market value, fair market value will be determined by one (1) independent accredited appraiser who will conduct an appraisal and, in doing so, be bound by the criteria for the purchase price described above. If we and you cannot agree on an independent appraiser, you will select one appraiser, we will select one appraiser, and these two appraisers will appoint the appraiser to determine the fair market value. You and we agree to select an appraiser within fifteen (15) days after we notify you that we wish to exercise our purchase option (if you and we have not agreed on fair market value before then), and, if necessary, the two appraisers selected by you and us are obligated to appoint the actual appraiser within fifteen (15) days after the last of the two is selected. You and we will share equally the appraisers 'fees and expenses. The appraiser must complete its appraisal within thirty (30) days after its appointment.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, if Clean Your Dirty Face purchases your business due to a termination event, they may exclude certain assets from the purchase. The purchase price for your Clean Your Dirty Face business will be the reasonable fair market value, but this excludes any value for the rights granted by the agreement, goodwill attributable to Clean Your Dirty Face's marks, brand image, intellectual property, or participation in the Clean Your Dirty Face network.
Clean Your Dirty Face can exclude Operating Assets and supplies that are not reasonably necessary for the business's operation or that do not meet the System Standards. The purchase price will be adjusted to reflect these exclusions. This means that if your equipment or supplies are deemed unnecessary or do not meet Clean Your Dirty Face's standards, you will not be compensated for them during the purchase of your business.
In the event that you and Clean Your Dirty Face cannot agree on the fair market value, an independent accredited appraiser will determine the value, adhering to the criteria mentioned above. If you and Clean Your Dirty Face cannot agree on an appraiser, you and Clean Your Dirty Face will each select an appraiser, and those two appraisers will then appoint a third appraiser to determine the fair market value. You and Clean Your Dirty Face will equally share the fees and expenses of the appraisers. The appraiser has 30 days to complete the appraisal after being appointed.