If Clean Your Dirty Face operates my business on an interim basis, what are my obligations?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
Business, or we disapprove your Operating Partner, or your Operating Partner for any other reason becomes incapable of managing the operations of your Business (determined in our sole discretion).
If we (or a third party) elect to operate your Business on an interim basis, you must cooperate with us and our designees, continue to support the operations of your Business, and comply with all of our instructions and System Standards, including making available any and all books, records and accounts. You understand and acknowledge that during any such interim period, you are still the owner of the Business and you continue to bear sole responsibility for any and all accounts payable, obligations and/or contracts, including all obligations under the Lease and all obligations to your vendors, employees and contractors, unless and until we expressly assume them in connection with the purchase of your Business under Section 15.E. You understand that we are not required to use our employees, vendors, or accounts to operate your Business. You also agree that we may elect to cease such interim operations of your Business at any time with notice to you.
All funds from your Business's operation while we (or our designee) operate it will be kept in a separate account, and all expenses will be charged to such account, including any applicable Royalty, Marketing Fund Contributions, and other amounts due to us or our affiliates, and our then-current fee for our interim services (currently fifteen percent (15%) of your Business's Gross Sales, which may be adjusted with inflation), plus our or our designee's direct out-of-pocket costs
and expenses.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, if Clean Your Dirty Face (or a third party they designate) elects to operate your business on an interim basis, you have several obligations. These obligations include cooperating with Clean Your Dirty Face and their designees, continuing to support the operations of your business, and complying with all of Clean Your Dirty Face's instructions and System Standards. This also includes making available any and all books, records, and accounts related to the business.
As the franchisee, you retain ownership of the business during this interim period and remain solely responsible for all accounts payable, obligations, and contracts. This encompasses all obligations under the lease and to vendors, employees, and contractors, unless Clean Your Dirty Face expressly assumes these obligations in connection with purchasing your business. Clean Your Dirty Face is not obligated to use its own employees, vendors, or accounts to operate your business during the interim period and may cease interim operations at any time with notice to you.
All funds generated from the business's operation during the interim period will be kept in a separate account. Expenses will be charged to this account, including any applicable Royalty, Marketing Fund Contributions, and other amounts due to Clean Your Dirty Face or its affiliates. Additionally, Clean Your Dirty Face will charge a fee for their interim services, which is currently fifteen percent (15%) of your business's Gross Sales, and may be adjusted with inflation, plus direct out-of-pocket costs and expenses. Clean Your Dirty Face (or their designee) is only obligated to utilize reasonable efforts and will not be liable for any debts, losses, or obligations your business incurs during their management.