For a Clean Your Dirty Face franchise, what are 'Tenant Approvals'?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything in the Lease to the contrary, if Tenant is unable to obtain licenses, building permits, signage permits, variances, subdivision approvals, special use permits and other governmental approvals necessary to construct and operate a Business (all of the foregoing licenses, permits and approvals are hereinafter referred to as the "Tenant Approvals") within one hundred eighty (180) days after Landlord's approval of Tenant's Plans, Tenant may terminate this Lease by written notice to Landlord, effective as of the date of delivery of written notice to Landlord thereof and any remaining security deposit shall be returned to Tenant, and any rentals paid in advance shall be prorated accordingly.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, 'Tenant Approvals' refer to the licenses, permits, and approvals necessary for a franchisee to construct and operate their Clean Your Dirty Face business. These include licenses, building permits, signage permits, variances, subdivision approvals, and special use permits.
If a Clean Your Dirty Face franchisee is unable to obtain all necessary Tenant Approvals within 180 days after the landlord approves the franchisee's plans, the franchisee has the right to terminate the lease. This termination must be communicated to the landlord in writing, and upon termination, any remaining security deposit is to be returned to the franchisee. Additionally, any rentals paid in advance will be prorated and returned to the franchisee.
This clause protects the Clean Your Dirty Face franchisee from being locked into a lease if they cannot secure the required legal permissions to operate their business at the chosen location. It also ensures they receive their security deposit and any prepaid rent back, reducing their financial risk during the initial setup phase. This is a fairly standard clause in franchise agreements, as it protects both the franchisee and franchisor from investing in a location that cannot be legally operated.