What monetary obligations must be met for a Clean Your Dirty Face franchise transfer to be approved?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
You should read these provisions in the agreements attached to this Disclosure Document.**
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY | |---|---|---| | (a) Length of the | Section 1.C | Term of the Franchise Agreement is 5 years. | | franchise term | | | | (b) Renewal or | Section 13.A | 1 successor franchise terms of 5 years, if you meet certain | | extension of the term | | requirements. |
| 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; |
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, a franchisee looking to transfer their franchise must meet certain monetary obligations to gain franchisor approval. Specifically, all outstanding monetary obligations must be paid in full before the transfer can proceed. Additionally, the franchisee must pay a transfer fee of $25,000 to Clean Your Dirty Face.
Beyond these direct payments, the franchisor also assesses the financial stability of the transfer. Clean Your Dirty Face must determine that the financial terms of the transfer will not negatively impact the CYDF Facial Bar's performance or jeopardize the franchisor's rights. This implies that the franchisor will scrutinize the financial arrangements of the transfer to ensure the ongoing viability of the business.
Furthermore, the franchisee may need to address any existing deficiencies in their Clean Your Dirty Face Facial Bar. If notified of such deficiencies, the franchisee must correct them before the transfer is approved. Alternatively, the transferee can agree to upgrade, remodel, or refurbish the Facial Bar, potentially requiring them to escrow an amount approved by Clean Your Dirty Face to cover these costs. This ensures that the location meets the franchisor's standards even after the transfer.