Does the post-term restrictive covenant for Clean Your Dirty Face apply to the franchisee's spouse?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the first to occur of: (a) termination or expiration without renewal of the Franchise Agreement; or (b) the date as of which Covenantor is neither (i) a director or officer of Franchisee or (ii) an individual who will have access to Confidential Information (each of these events is referred to as a "Termination Event"), Covenantor agrees that for a period of two (2) years
commencing on the effective date of a Termination Event, neither Covenantor nor Covenantor's spouse shall have any direct or indirect interest as a disclosed or beneficial owner in, or assist or perform services as a director, officer, manager, employee, consultant, lessor, representative, agent, or otherwise for, a Competitive Business located or operating within a ten (10-mile radius of the premises of the franchised business operated pursuant to the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the post-term restrictive covenant does indeed apply to the franchisee's spouse. Specifically, the agreement states that upon termination or expiration of the franchise agreement, both the franchisee (referred to as 'Covenantor') and their spouse are restricted from engaging in or having ownership in a competitive business.
This restriction extends for a period of two years following the termination event and applies within a ten-mile radius of the former Clean Your Dirty Face location. This means that the franchisee's spouse cannot own, operate, assist, or perform services for a competing business that offers facials or skincare services within that specified geographic area during the restricted period.
This clause is designed to protect Clean Your Dirty Face's market share and confidential information by preventing former franchisees and their spouses from leveraging their knowledge and resources to directly compete with the franchise shortly after their departure. Prospective franchisees should carefully consider the implications of this restriction for their spouses, as it could limit their employment or business opportunities in the event the franchise agreement is terminated.