How many additional terms can Clean Your Dirty Face request for the lease of the premises?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
If you lease the Premises from an unaffiliated lessor, or if we choose not to purchase the Premises from you (or one of your affiliates), you agree, at our election to (i) assign your Lease to us, (ii) enter into a sublease with us for the remainder of the Lease term on the same terms (including renewal options) as the Lease, or (iii) lease the Premises to us for an initial term of five (5) years with, at our option, up to three (3) additional terms of five (5) years each, on commercially reasonable terms.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, if the franchisee leases the premises from an unaffiliated lessor, Clean Your Dirty Face has the option to lease the premises from the franchisee. The initial term of the lease would be five years, with Clean Your Dirty Face having the option to extend the lease for up to three additional terms of five years each.
This arrangement provides Clean Your Dirty Face with flexibility and control over the location of the franchise. By securing the option to lease the premises for a total of up to 20 years (an initial 5-year term plus three 5-year extensions), Clean Your Dirty Face can ensure the long-term viability of the location for a Clean Your Dirty Face Facial Bar.
For a prospective franchisee, this clause means that Clean Your Dirty Face could potentially take over the lease under certain conditions. This could happen if the franchisee's relationship with Clean Your Dirty Face ends, or if Clean Your Dirty Face otherwise decides it is in their best interest to control the lease directly. The franchisee should consider this possibility and its implications for their business plans and investment. It is important to note that Clean Your Dirty Face's decision to exercise this option is subject to commercially reasonable terms.
It is also important to note that Clean Your Dirty Face has the option to purchase the premises from the franchisee. If Clean Your Dirty Face chooses to purchase the premises, the franchisee will be required to deliver the ownership interest or leasehold interest in the premises.