What is the purpose of Exhibit D in the Clean Your Dirty Face franchise agreement?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
g)
IN WITNESS WHEREOF, the parties have executed this Agreement on the day, month, and year first set forth below.
INDIVIDUAL: (signature) _, an individual aprovided above) (d/b/a) Sign:Name:
EXHIBIT D
TO THE FRANCHISE AGREEMENT
GUARANTY AND ASSUMPTION OF OBLIGATIONS
THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS ("Guaranty") is given by the persons indicated below who have executed this Guaranty (each a "Guarantor") to be effective as of the Effective Date of the Agreement (defined below). Capitalized terms that are used but not defined in this Guaranty will have the meanings ascribed to them in the Agreement.
In consideration of, and as an inducement to, the execution of that certain Franchise Agreement (as amended, modified, restated or supplemented from time to time, the "Agreement") by Mud Franchising, LLC (the "Franchisor"), and _______ ("Franchisee"), each of the undersigned hereby personally and unconditionally (a) guarantees to Franchisor, and its successor and assigns, for the term of the Agreement and as provided in the Agreement, that Franchisee shall punctually pay and perform each and every undertaking, agreement and covenant set forth in the Agreement and (b) agrees to be personally bound by, and personally liable for the breach of, each and every provision in the Agreement, both monetary obligations and obligations to take or
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, Exhibit D to the Franchise Agreement is a Guaranty and Assumption of Obligations. This Guaranty is provided by individuals, referred to as Guarantors, to ensure the Franchisee adheres to the terms of the Franchise Agreement.
The Guarantor agrees to guarantee that the Franchisee will fulfill all obligations, agreements, and covenants outlined in the Franchise Agreement, including both monetary obligations and specific actions required or prohibited. This guarantee extends for the entire term of the Agreement.
By signing this Guaranty, the Guarantor becomes personally bound by and liable for any breaches of the Franchise Agreement. This provides Clean Your Dirty Face with an additional layer of security, ensuring that someone is responsible for the franchisee's performance under the agreement. This is a common practice in franchising, especially when the franchisee is a corporate entity or has limited operating history.