What is the Original Guaranty for a Clean Your Dirty Face franchise guaranteeing after the transfer?

According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the Original Guaranty remains in effect after a franchise transfer. The Original Guaranty serves as a guarantee of what the FDD refers to as the "Surviving Obligations". These obligations include several key areas.

Specifically, the Original Guaranty covers obligations or liabilities related to: (i) ongoing responsibilities after the transfer, such as those concerning termination restrictive covenants, indemnification, dispute resolution, non-disparagement, confidentiality provisions, and the obligation to cease using any proprietary trademarks; (ii) any obligations arising prior to the Transfer Date (including any obligations to pay any amounts to Franchisor accruing prior to the Transfer Date); (iii) any failure to perform, improper performance, or other breach, default or violation by any Transferor Party of the Original Agreement; or (iv) any obligations of the Transferor Parties under this Consent.

This means that even after a Clean Your Dirty Face franchise is transferred to a new owner, the original guarantor remains responsible for ensuring these specific obligations are met. Clean Your Dirty Face may pursue available remedies against the original guarantors if the transferring party fails to comply with any of these Surviving Obligations. This provision protects Clean Your Dirty Face from potential liabilities or breaches of contract that may arise from the actions or inactions of the transferring franchisee, even after the transfer has been completed.