What must a Clean Your Dirty Face franchisee do to renew their franchise agreement upon its expiration?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise agreements typically require the franchisee to pay an initial, non-refundable fee prior to opening the respective location(s), and continuing royalty fees on a monthly basis based upon a percentage of franchisee gross sales, as defined by the franchise agreement. The initial term of franchise agreements are typically 5 years. Subject to the Company's approval, a franchisee may generally renew the franchise agreement upon its expiration. If approved, a franchisee may transfer a franchise agreement to a new or existing franchisee. A franchise agreement is signed with the new franchisee with no franchise fee required.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 FDD, the initial term for a Clean Your Dirty Face franchise agreement is typically 5 years. Upon expiration of the initial term, a franchisee may generally renew the franchise agreement, subject to Clean Your Dirty Face's approval.
This means that renewal is not guaranteed and depends on the franchisor's discretion. A prospective franchisee should inquire about the specific criteria Clean Your Dirty Face uses to evaluate renewal applications. Understanding these criteria is crucial for a franchisee to maintain a good standing and increase their chances of securing a renewal.
Additionally, the FDD mentions that a franchisee may transfer a franchise agreement to a new or existing franchisee with Clean Your Dirty Face's approval. In such cases, a new franchise agreement is signed with the new franchisee, and no franchise fee is required. This provides an exit strategy for franchisees who may not wish to renew or continue operating their Clean Your Dirty Face location.