For Clean Your Dirty Face, what form must the guaranty be in?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
Any person owning an interest in you at any time during this Agreement's term will execute a guaranty in the form we prescribe undertaking personally to be bound, jointly and severally, by all provisions of this Agreement and any ancillary agreements between you and us.
Our current form of guaranty is attached hereto as Exhibit D.
Subject to our rights and your obligations under Section 12, you and your owners agree to sign and deliver to us a revised Exhibit A to reflect any changes in your ownership information;
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, or general or limited partnership (collectively, an "Entity"), any person owning an interest in the franchisee at any time during the agreement's term must execute a guaranty in the form that Clean Your Dirty Face prescribes. The current form of guaranty is attached to the Franchise Agreement as Exhibit D.
This requirement ensures that Clean Your Dirty Face has recourse to the personal assets of the owners of the franchisee entity, providing an additional layer of security for the franchisor. This is a common practice in franchising, as it holds individuals accountable for the performance of the franchise, even if the franchise is operated through a separate legal entity.
A prospective franchisee should carefully review Exhibit D, the form of guaranty, to understand the full extent of the personal liability they will be undertaking. They should also consult with an attorney to fully understand the implications of signing such a guaranty. Franchisees should also note that Clean Your Dirty Face may revise Exhibit A to reflect any changes in ownership information.