For how long can Clean Your Dirty Face operate my business on an interim basis?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
n any twelve (12) consecutive month period; or
- you fail to pay when due any third-party supplier and do not cure such (26)failure within the applicable cure period.
14.C. INTERIM OPERATIONS.
We have the right (but not the obligation) to enter the Premises and operate your Business on an interim basis (or to appoint a third party to operate your Business on an interim basis) for a period of up to 60 days, if: (1) you abandon or fail actively to operate your Business; (2) this Agreement is terminated and we are deciding whether to exercise our option to purchase your Business under Section 15.E; or (3) your Operating Partner dies, or transfers its interest in you or your 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. If we (or a third party) operate your Business on an interim basis, you acknowledge that we (or our designee) will have a duty to utilize only reasonable efforts and will not be liable to you or your owners for any debts, losses, or obligations your Business incurs, or to any of your creditors for any supplies, products, or other assets or services your Business purchases, while we (or the third party) manage it.
Our decision to operate your Business on an interim basis (or to appoint a third party to operate your Business on an interim basis) will not affect our right to terminate this Agreement under Section 14.B. Your indemnification obligations set forth under Section 16.D will continue to apply during any period in which we or our designee operate your Restaurant on an interim basis.
15.
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 has the right, but not the obligation, to operate your business on an interim basis for up to 60 days. This can occur if you abandon the business, if the Franchise Agreement is terminated while Clean Your Dirty Face decides whether to purchase your business, or if your Operating Partner dies, transfers their interest, is disapproved by Clean Your Dirty Face, or becomes incapable of managing the business.
If Clean Your Dirty Face elects to operate your business on an interim basis, you must cooperate with them, continue to support the business operations, and comply with all instructions and System Standards. During this period, you remain the owner of the business and are responsible for all accounts payable, obligations, and contracts, including lease obligations and obligations to vendors, employees, and contractors, unless Clean Your Dirty Face expressly assumes them in connection with purchasing your business.
All funds generated during the interim operation will be kept in a separate account, and all expenses will be charged to this account. This includes any applicable Royalty, Marketing Fund Contributions, and other amounts due to Clean Your Dirty Face or its affiliates. Clean Your Dirty Face will also charge a fee for their interim services, which is currently fifteen percent (15%) of your business's Gross Sales, adjusted for inflation, plus their direct out-of-pocket costs and expenses. Clean Your Dirty Face can cease interim operations at any time with notice to you. Clean Your Dirty Face's decision to operate your business on an interim basis does not affect their right to terminate the Franchise Agreement.