What happens upon the death or disability of a Clean Your Dirty Face franchisee?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT |
|---|---|
| SUMMARY | |
| (m) Conditions for | Section 12.C Under Franchise Agreement, the following qualifications must |
| franchisor approval of | |
| transfer | be met: all monetary obligations are paid; you are not in default of any provisions of the Franchise Agreement, your lease of the Business premises or any other agreement with us; new franchise owner (and its owners and affiliates) are not in a Competitive Business (as defined below); completion of Training Program; lease permitted to be transferred; you or transferee signs our then-current Franchise Agreement and other documents, provisions of which may differ materially from those contained in the Franchise Agreement; you pay transfer fee of $25,000; you (and your owners) sign a general release and guaranty; we determine that the financial terms of the transfer will not burden your CYDF Facial Bar or jeopardize our rights; you subordinate amounts due to you; you correct existing deficiencies in your CYDF Facial Bar of which we notify you and/or the transferee agrees to upgrade, remodel and refurbish your CYDF Facial Bar for which we may require transferee to escrow an amount we approve for the payment of this upgrade, remodel or refurbishment; you de-identify; and you comply with non-compete obligations. |
| (n) Franchisor’s right | Section 12.E We have a 30-day right of first refusal and can match offers. |
| of first refusal to | |
| acquire franchisee’s | |
| business | |
| (o) Franchisor’s option to purchase franchisee’s business | Section 15.E We may purchase your CYDF Facial Bar at fair market value upon the termination or expiration of the Franchise Agreement. We may exercise this right by giving you written notice of our election within 30 days after the date of the Termination Event. |
| (p) Death or disability | Section 12.F Upon death or disability of you (or your Operating Partner) or |
| of franchisee | a Controlling Owner, your (or your Operating Partner’s) or the Controlling Owner’s executor or personal representative must transfer the ownership interest within 9 months of date of death or disability. A new Operating Partner must be appointed within 60 days. We may assume your CYDF Facial Bar’s management or appoint an interim manager to operate your CYDF Facial Bar. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, Section 12.F of the franchise agreement addresses the death or disability of a franchisee, Operating Partner, or Controlling Owner. In such an event, the executor or personal representative is required to transfer the ownership interest within 9 months from the date of death or disability. Additionally, a new Operating Partner must be appointed within 60 days.
During this transition period, Clean Your Dirty Face has the option to assume management of the franchisee's CYDF Facial Bar or appoint an interim manager to oversee operations. This provision ensures business continuity and adherence to Clean Your Dirty Face standards during the change in ownership or management.
For a prospective Clean Your Dirty Face franchisee, this clause provides a framework for handling unforeseen circumstances. It is important to understand the obligations placed on the estate or representatives and the timeline for transferring ownership or appointing a new Operating Partner. Franchisees should consider these factors when making estate planning decisions to ensure a smooth transition and protect the value of their Clean Your Dirty Face franchise.