Does Clean Your Dirty Face grant franchisees an exclusive territory?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 12: TERRITORY]
Item 12 TERRITORY
You will not receive an exclusive territory under the Franchise Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You have no options, rights of first refusal or similar rights to acquire additional franchises.
We (and our affiliates) retain all rights with respect to the placement of CYDF Facial Bars and other businesses using the Marks, the sale of similar or dissimilar products and services, and any other activities. These rights include:
- (1) the right to establish and operate, and allow others to establish and operate, other CYDF Facial Bars and other businesses using the Marks, or the Franchise System, at any location and on any terms and conditions we approve;
- (2) the right to establish and operate, and allow others to establish and operate, additional concepts or businesses providing products or services similar to those provided at CYDF Facial Bars anywhere and under any trade names, trademarks, service marks and commercial symbols;
- (3) the right to establish, and allow others to establish, other distribution channels (including, the Internet, catalog sales, telemarketing, other direct marketing sales, or retail stores) wherever located or operating regardless of the nature or location of the customers, with whom such other distribution channels do business, that operate under the Marks or any other trade names, trademarks, service marks or commercial symbols that are the same as or different from CYDF Facial Bars and that sell products and/or services that are identical or similar to, and/or competitive with, those that CYDF Facial Bars customarily sell under any terms and conditions we approve;
- (4) offer and sell (and grant others to offer and sell) goods and services to customers located anywhere;
- (5) the right to acquire, or be acquired by (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction) a business providing products and services similar to those provided at CYDF Facial Bars, even if such business operates, franchises and/or licenses competitive businesses; and
- (6) engage in all other activities not expressly prohibited by the Franchise Agreement.
We are not required to pay you if we exercise any of the rights specified above.
Source: Item 12 — TERRITORY (FDD pages 39–40)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, Clean Your Dirty Face franchisees do not receive an exclusive territory. The document explicitly states that franchisees may face competition from other franchisees, outlets owned by Clean Your Dirty Face, other distribution channels, or competitive brands controlled by Clean Your Dirty Face. Furthermore, franchisees do not have any options, rights of first refusal, or similar rights to acquire additional franchises. This means that Clean Your Dirty Face retains full control over the placement of new locations and other businesses using their trademarks.
Clean Your Dirty Face reserves several rights, including the right to establish and operate additional Clean Your Dirty Face locations or other businesses using the Clean Your Dirty Face marks, under any terms and conditions they deem appropriate. They also have the right to establish and operate additional concepts or businesses providing similar products or services under different trade names. Additionally, Clean Your Dirty Face can establish other distribution channels, such as internet sales or retail stores, regardless of the location of customers.
This lack of territorial exclusivity has significant implications for prospective franchisees. It means that Clean Your Dirty Face could open a new location nearby, potentially drawing customers away from an existing franchisee's location. The franchisee bears the risk of direct competition from the franchisor and other franchisees. This is a fairly common practice in the franchise industry, although some franchises do offer protected territories to incentivize investment and reduce competition among franchisees.
Clean Your Dirty Face is not required to compensate franchisees if they exercise any of these rights, further emphasizing the non-exclusive nature of the franchise agreement. Prospective franchisees should carefully consider the potential impact of this non-exclusivity on their business's profitability and market share before investing in a Clean Your Dirty Face franchise.