What is the geographic scope of the non-compete agreement for Clean Your Dirty Face franchisees?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
15.F. COVENANT NOT TO COMPETE.
Upon termination or expiration of this Agreement, you and your owners agree that, for two (2) years beginning on the effective date of termination or expiration, neither you nor any of your owners (or their immediate family members) will have any direct or indirect interest as an owner (whether of record, beneficially, or otherwise), investor, partner, director, officer, employee, independent contractor, consultant, lessor, representative, or agent in any Competitive Business located or operating at the Premises, or within a ten (10) mile radius of your Premises.
If any person restricted by this Section 15.F fails to comply with these obligations as of the date of termination or expiration, the two (2) year restricted period for that person will commence on the date the person begins to comply with this Section 15.F, which may be the date a court order is entered enforcing this provision.
You and your owners expressly acknowledge that you possess skills and abilities of a general nature and have other opportunities for exploiting these skills. Consequently, our enforcing the covenants made in this Section 15.F will not deprive you of your personal goodwill or ability to earn a living.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face FDD, upon termination or expiration of the franchise agreement, the franchisee and their owners are restricted from having any direct or indirect interest in a Competitive Business. This restriction applies for two years, beginning on the effective date of termination or expiration.
A Competitive Business is defined as any business that offers facials and/or other skincare services, excluding other Clean Your Dirty Face locations. The geographic scope of this non-compete is limited to the physical location of the former Clean Your Dirty Face franchise or within a ten-mile radius of the former franchise's premises.
The FDD specifies that if any person fails to comply with these obligations from the date of termination or expiration, the two-year restricted period will commence on the date the person begins to comply with the non-compete terms. This may be the date a court order is entered to enforce the provision. Clean Your Dirty Face emphasizes that franchisees possess general skills and abilities and have other opportunities to earn a living, so enforcing the non-compete will not deprive them of their personal goodwill or ability to earn a living.