For a Clean Your Dirty Face franchise transfer, what is the role of the Transferee Guarantor?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Transferee must sign Franchisor's then-current form of franchise agreement and related documents, including execution of a guaranty of all obligations thereunder by the Transferee Guarantors (together, the "New Agreement"), any and all of the provisions of which may differ materially from any and all of those in the Original Agreement; provided, the term of the New Agreement will be the remaining term of the Original Agreement;
Source: Item 23 — RECEIPTS (FDD pages 54–186)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, a Transferee Guarantor is required to execute a guaranty of all obligations under the new franchise agreement. This guaranty is part of the new agreement that the Transferee must sign during a transfer.
In essence, the Transferee Guarantor is guaranteeing that the Transferee will meet all the obligations outlined in the new franchise agreement. This provides Clean Your Dirty Face with an additional layer of security, ensuring that there is a party responsible for the Transferee's performance under the agreement.
It is important to note that the provisions of the new agreement, including the guaranty, may differ significantly from the original agreement. The role of the Transferee Guarantor is a standard practice in franchising, as it mitigates the risk associated with transferring a franchise to a new owner.