For a Clean Your Dirty Face franchise, what constitutes a default under the lease?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Default.
Notwithstanding anything in the Lease to the contrary, a default under the Lease shall constitute a default under the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, a default under the lease for a Clean Your Dirty Face location constitutes a default under the Franchise Agreement. This means that if a franchisee violates the terms of their lease agreement, such as by failing to pay rent or maintain the premises, it is automatically considered a violation of the Franchise Agreement itself. This clause strengthens Clean Your Dirty Face's position, allowing them to take action against the franchisee under both the lease and the Franchise Agreement.
This provision has significant implications for prospective Clean Your Dirty Face franchisees. It means that the franchisee must adhere to all terms of the lease agreement to avoid being in default of the Franchise Agreement. Franchisees should carefully review the lease agreement and understand their obligations to ensure compliance.
Clean Your Dirty Face also has the right to receive notice of any default by the tenant (franchisee) from the landlord. The franchisor then has an additional cure period to address the default, providing them with an opportunity to protect their brand and the location. This cure period is fifteen days for monetary defaults and thirty days for non-monetary defaults after the franchisor receives notice. The landlord agrees to accept a cure tendered by Clean Your Dirty Face as if it were tendered by the tenant, although Clean Your Dirty Face is not obligated to cure the default.
Furthermore, Clean Your Dirty Face requires that the lease cannot be terminated, modified, or amended without their prior written consent, nor can the landlord accept surrender of the premises without the franchisor's prior written consent. This provision ensures that Clean Your Dirty Face maintains control over the location and can protect its interests in the event of any issues between the franchisee and the landlord. Franchisees must be aware of these conditions and understand that any changes to the lease require Clean Your Dirty Face's approval.