What ownership interest must the Operating Partner have in the Clean Your Dirty Face franchise entity?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are an entity, you must identify an Operating Partner, who must be a natural person with at least a 25% ownership interest and voting power in you. We may require our approval of the Operating Partner. You (or your Operating Partner) are responsible for the management, direction, business development, and control of your CYDF Facial Bar, subject to the terms and conditions of the Franchise Agreement. You (or our Operating Partner) must supervise the management and day-to-day operations of your CYDF Facial Bar on a full-time basis. Your CYDF Facial Bar must always be under the direct on-site supervision of one or more persons who have completed our Training Program.
You (or your Operating Partner) must complete all required training to our satisfaction. In the event that your Operating Partner ceases to own at least its required ownership interest in you, you must recruit a new Operating Partner within 6 days of the change in ownership and submit the identity of the new Operating Partner to us for our review and approval. If you appoint a new Operating Partner after you open your CYDF Facial Bar, the Operating Partner must complete the Training Program within 30 days after the date of appointment. You must keep us informed at all times of the identity of the Operating Partner.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 43)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, if the franchisee is an entity, they must designate an Operating Partner. This Operating Partner must be a natural person and hold at least 25% ownership interest and voting power in the franchise entity. Clean Your Dirty Face retains the right to approve the designated Operating Partner.
This requirement ensures that a responsible individual with a significant stake in the business is actively involved in its management. The Operating Partner is responsible for the management, direction, business development, and control of the Clean Your Dirty Face Facial Bar, subject to the terms and conditions outlined in the Franchise Agreement. They must also supervise the day-to-day operations on a full-time basis.
If the Operating Partner ceases to own at least the required 25% ownership interest, the franchisee must recruit a new Operating Partner within 60 days of the change in ownership and submit their identity to Clean Your Dirty Face for review and approval. The new Operating Partner must complete the required training program within 30 days of appointment. Clean Your Dirty Face must be kept informed of the identity of the Operating Partner at all times.
This stipulation is fairly common in franchising, as franchisors want to ensure that someone with a vested interest is actively managing the location. It protects the brand and ensures compliance with the franchise agreement. The Operating Partner is authorized to deal with Clean Your Dirty Face on behalf of the franchisee for all matters related to the agreement, and Clean Your Dirty Face will rely solely on the Operating Partner's decisions.