Can a Clean Your Dirty Face franchise be transferred to someone involved in a Competitive Business?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
u meet certain | | extension of the term | | requirements. |
| PROVISION | SECTION IN FRANCHISE AGREEMENT |
|---|---|
| SUMMARY | |
| (m) Conditions for | Section 12.C Under Franchise Agreement, the following qualifications must |
| franchisor approval of | |
| transfer | be met: all monetary obligations are paid; you are not in default of any provisions of the Franchise Agreement, your lease of the Business premises or any other agreement with us; new franchise owner (and its owners and affiliates) are not in a Competitive Business (as defined below); completion of Training Program; lease permitted to be transferred; you or transferee signs our then-current Franchise Agreement and other documents, provisions of which may differ materially from those contained in the Franchise Agreement; you pay transfer fee of $25,000; you (and your owners) sign a general release and guaranty; we determine that the financial terms of the transfer will not burden your CYDF Facial Bar or jeopardize our rights; you subordinate amounts due to you; you correct existing deficiencies in your CYDF Facial Bar of which we notify you and/or the transferee agrees to upgrade, remodel and refurbish your CYDF Facial Bar for which we may require transferee to escrow an amount we approve for the payment of this upgrade, remodel or refurbishment; you de-identify; and you comply with non-compete obligations. |
| (n) Franchisor’s right | Section 12.E We have a 30-day right of first refusal and can match offers. |
| of first refusal to | |
| acquire franchisee’s | |
| business | |
| (o) Franchisor’s option to purchase franchisee’s business | Section 15.E We may purchase your CYDF Facial Bar at fair market value upon the termination or expiration of the Franchise Agreement. We may exercise this right by giving you written notice of our election within 30 days after the date of the Termination Event. |
| (p) Death or disability | Section 12.F Upon death or disability of you (or your Operating Partner) or |
| of franchisee | a Controlling Owner, your (or your Operating Partner’s) or the Controlling Owner’s executor or personal representative must transfer the ownership interest within 9 months of date of death or disability. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, a franchise transfer is contingent upon the new franchise owner (including their owners and affiliates) not being involved in a Competitive Business. The FDD defines a Competitive Business as any business that offers facials and/or other skincare services, excluding other Clean Your Dirty Face Facial Bars operated under a franchise agreement with them or their affiliates.
This condition ensures that the transferee is not a direct competitor who could exploit the Clean Your Dirty Face system or brand for their own gain. It protects Clean Your Dirty Face's market position and proprietary information.
In practical terms, a prospective buyer who owns or operates a competing skincare business would be ineligible to acquire a Clean Your Dirty Face franchise unless they divest themselves of the conflicting business. This requirement is a standard practice in franchising to maintain brand integrity and prevent conflicts of interest. Franchisees should carefully review the definition of "Competitive Business" in the franchise agreement to fully understand the scope of this restriction.