In the Clean Your Dirty Face franchise agreement, what is the 'Effective Date' defined as?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
n 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.
You agree at all times faithfully, honestly, and diligently to perform your obligations under this Agreement and to use your best efforts to promote your Business. You may use the Premises only for your Business.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, the franchise agreement term begins on the Effective Date. The agreement lasts for five years from the Effective Date, unless terminated earlier as specified in the agreement. If the specific location of the premises is not determined by the Effective Date, it will be selected later according to Section 2.A, but must be within the geographical area outlined in Exhibit B.
The Effective Date is also referenced in the signature section of the franchise agreement, where it states that the agreement is executed and delivered to be effective as of the Effective Date. Additionally, Exhibit A of the franchise agreement is labeled as current and complete as of the Effective Date.
Furthermore, Clean Your Dirty Face can terminate the agreement if the franchisee does not receive written approval of the proposed site and lease within 60 days of the Effective Date, or if the franchisee fails to open their business within 365 days of the Effective Date. These stipulations highlight the importance of the Effective Date as a key starting point for measuring critical deadlines and obligations within the franchise agreement.