What is Clean Your Dirty Face's policy regarding legends or endorsements on checks?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
No special or restrictive legend or endorsement on any check or similar item given to us will be a waiver, compromise, settlement, or accord and satisfaction. We are authorized to remove any legend or endorsement, which then will have no effect.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the franchisor is not bound by any special or restrictive legends or endorsements that a franchisee might include on checks or similar payment items. This means that if a franchisee attempts to use a check to settle a dispute or make a conditional payment (e.g., writing "payment in full" on a check for a disputed amount), Clean Your Dirty Face is not obligated to honor that condition.
Clean Your Dirty Face retains the authority to remove any such legend or endorsement from the check, and the endorsement will then have no effect. This policy protects Clean Your Dirty Face from inadvertently waiving rights or settling claims through ambiguous or unilateral endorsements on checks.
This type of clause is relatively common in franchise agreements to ensure that the franchisor maintains control over dispute resolution and isn't subject to implied agreements based on check endorsements. Franchisees should be aware that any attempt to use check endorsements to negotiate or settle terms will not be recognized by Clean Your Dirty Face, and they should instead pursue formal channels for any disputes or negotiations.