Who must execute a guaranty for a Clean Your Dirty Face franchise transfer?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer 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;
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. This requirement is part of the conditions that Clean Your Dirty Face sets for approving a franchise transfer.
This means that if you, as a Clean Your Dirty Face franchisee, decide to sell your franchise, the potential buyer and any individuals or entities with direct or indirect ownership in the buyer's business must sign a guaranty. This guaranty ensures that these parties are legally bound to uphold the obligations outlined in the franchise agreement.
The purpose of this requirement is to provide Clean Your Dirty Face with added security that the new ownership will comply with the franchise agreement's terms and conditions. It also protects Clean Your Dirty Face's interests by ensuring that all individuals with a stake in the franchise are committed to its success and adherence to brand standards. Prospective franchisees should carefully review the guaranty form and understand its implications before proceeding with a franchise transfer.