Is a Clean Your Dirty Face franchisee required to apply for government-issued grants or loans?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that you will, at all times, maintain sufficient working capital reserves as necessary and appropriate to comply with your obligations under this Agreement. On our request, you will provide us with evidence of working capital availability. We reserve the right, from time to time, to establish certain levels of working capital reserves, and you will comply with such requirements. We may from time to time designate the maximum amount of debt that any CYDF Facial Bars may service, and you will ensure that you will comply with such limits. You agree to apply for and diligently pursue any government-issued, government-sponsored, or government-guaranteed grants, non-recourse loans, or bail-outs for which you qualify and that are made available to small businesses as an economic stimulus, if necessary to comply with your obligations under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, franchisees may be required to apply for government-issued grants or loans under certain conditions. Specifically, if it becomes necessary for the franchisee to meet their financial obligations under the Franchise Agreement, they agree to diligently pursue any government-issued, government-sponsored, or government-guaranteed grants, non-recourse loans, or bail-outs for which they qualify. These funds must also be available to small businesses as an economic stimulus.
This requirement is tied to the franchisee's ability to maintain sufficient working capital reserves to comply with the Franchise Agreement. Clean Your Dirty Face retains the right to establish certain levels of required working capital reserves and may also designate the maximum amount of debt that a CYDF Facial Bar can service. The franchisee must comply with these requirements and may need to seek government assistance to do so.
This stipulation means that prospective Clean Your Dirty Face franchisees should be aware of the potential need to seek and obtain government funding if their business faces financial challenges. While not an absolute requirement from the outset, it becomes a condition if it is necessary to maintain compliance with the Franchise Agreement's financial obligations. Franchisees should consider this potential obligation when assessing the financial risks and planning their business strategy.