What happens if Clean Your Dirty Face disapproves of the Operating Partner?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to approve the Operating Partner.
In the event that your Operating Partner ceases to own at least a twenty-five percent (25%) ownership interest and voting interest in you, or we disapprove of your Operating Partner, you must recruit a new Operating Partner within sixty (60) days of the change in ownership or disapproval and deliver to us a revised Exhibit A to accurately identify the Operating Partner for our review and approval;
- (6) You agree that the Operating Partner is authorized to deal with us on your behalf for all matters whatsoever that may arise with respect to this Agreement.
Any decision made by the Operating Partner will be final and binding on you and we will be entitled to rely solely on the decision of the Operating Partner without discussing the matter with any other party.
We will not be held liable for any actions based on any decision or actions of the Operating Partner; and
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, Clean Your Dirty Face reserves the right to approve the Operating Partner. If Clean Your Dirty Face disapproves of a franchisee's Operating Partner, the franchisee must recruit a new Operating Partner within 60 days of the disapproval. The franchisee must then deliver a revised Exhibit A to Clean Your Dirty Face, accurately identifying the new Operating Partner for their review and approval.
This requirement ensures that Clean Your Dirty Face maintains control over who manages the franchise. The Operating Partner is authorized to deal with Clean Your Dirty Face on behalf of the franchisee for all matters related to the Franchise Agreement, and Clean Your Dirty Face is entitled to rely solely on the Operating Partner's decisions without needing to consult with any other party. Clean Your Dirty Face will not be held liable for any actions based on the Operating Partner's decisions or actions.
This clause has significant implications for a franchisee. If Clean Your Dirty Face disapproves of their Operating Partner, the franchisee bears the responsibility of finding a suitable replacement within a tight timeframe. Failure to do so could potentially lead to further action by Clean Your Dirty Face, though the document does not explicitly state what those actions might be. The franchisee should clarify with Clean Your Dirty Face what the consequences are for failing to find a replacement Operating Partner within the 60-day window.