factual

Is the Clean Your Dirty Face franchisor obligated to cure a tenant's default?

Clean_Your_Dirty_Face Franchise · 2025 FDD

Answer from 2025 FDD Document

Prior to exercising any remedies hereunder (except in the event of imminent danger to the Premises), Landlord shall give Franchisor written notice of any default by Tenant, and commencing on receipt thereof by Franchisor, Franchisor shall have fifteen (15) additional days to the established cure period as is given to Tenant under the Lease for such default, provided that in no event shall Franchisor have a cure period of less than (i) fifteen (15) days after Franchisor's receipt of such notice as to monetary defaults or (ii) thirty (30) days after Franchisor's receipt of such notice as to non-monetary defaults.

Landlord agrees to accept cure tendered by Franchisor as if the same was tendered by Tenant, but Franchisor has no obligation to cure such default.

Source: Item 22 — CONTRACTS (FDD page 54)

What This Means (2025 FDD)

According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the franchisor is not obligated to cure a tenant's default. However, the landlord must provide written notice to Clean Your Dirty Face of any default by the tenant, except in cases of imminent danger to the premises. Upon receiving this notice, Clean Your Dirty Face has additional time to cure the default, specifically fifteen days beyond the tenant's cure period for monetary defaults, with a minimum of fifteen days from the notice receipt. For non-monetary defaults, Clean Your Dirty Face gets thirty days after receiving notice.

The landlord is obligated to accept a cure tendered by Clean Your Dirty Face as if it were tendered by the tenant. This arrangement ensures that Clean Your Dirty Face has the opportunity to protect its interest in the franchise location, even though it is not required to step in and resolve the tenant's defaults.

This clause is beneficial for prospective Clean Your Dirty Face franchisees as it gives the franchisor a chance to intervene and prevent a lease termination, which could negatively impact the franchisee's business. However, franchisees should be aware that Clean Your Dirty Face is not legally bound to cure any defaults, so the franchisee remains primarily responsible for fulfilling their lease obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.