What is the relationship between the Rider and the Lease agreement for a Clean Your Dirty Face franchise?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
tten notice to Landlord, effective as of the date of delivery of written notice to Landlord thereof and any remaining security deposit shall be returned to Tenant, and any rentals paid in advance shall be prorated accordingly.
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- Default. Notwithstanding anything in the Lease to the contrary, a default under the Lease shall constitute a default under the Franchise Agreement.
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- Third-Party Beneficiary. For so long as Franchisor holds a collateral assignment of the Lease, Franchisor is a third-party beneficiary of the Lease, including, without limitation, this Rider, and as a result thereof, shall have all rights (but not the obligation) to enforce the same.
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- Franchisor Right to Enter. Landlord acknowledges that, under the Franchise Agreement, Franchisor or its appointee has the right to assume the management and operation of the Tenant's business, on Tenant's behalf, under certain circumstances (to-wit: Tenant's abandonment, Tenant's failure to timely cure its default of the Franchise Agreement, and while Franchisor evaluates its right to purchase the location). Landlord agrees that Franchisor or its appointee may enter on the Premises for purposes of assuming the management and operation of Tenant's location as provided in the Franchise Agreement and, if it chooses to do so, it will do so in the name of the Tenant and without assuming any direct liability under the Lease. Further, on the expiration or earlier termination of this Lease or the Franchise Agreement, Franchisor or its designee may enter
on the Premises for the purpose of removing all signs and other material bearing the "Clean Your Dirty Face®" names or trademarks, service marks or other commercial symbols of Franchisor.
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- Amendments. Tenant agrees that the Lease may not be terminated, modified or amended without Franchisor's prior written consent, nor shall Landlord accept surrender of the Premises without Franchisor's prior written consent. Tenant agrees to promptly provide Franchisor with copies of all proposed modifications or amendments and true and correct copies of the signed modifications and amendments.
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- Copy of Lease. Landlord agrees to provide Franchisor with a copy of the fully-executed Lease within ten (10) days of its full execution by Landlord and Tenant to the address shown in paragraph 8 above.
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- Counterparts. This Rider may be executed in one or more counterparts, each of which shall cumulatively constitute an original. PDF/Faxed signatures of this Rider shall constitute originals of the same.
[Signature page to follow]
AGREED and executed and delivered under seal by the parties hereto as of the day and year of the Lease.
LANDLORD: TENANT:
EXHIBIT C
MULTI-UNIT RIDER TO FRANCHISE AGREEMENT
MULTI-UNIT DEVELOPMENT RIDER TO FRANCHISE AGREEMENT
| This MULTI-UNIT DEVELOPMENT RIDER TO FRANCHISE AGREEMENT (this | |
|---|---|
| "Rider") is made by and between MUD FRANCHISING, LLC, a North Carolina limited liability | |
| company, with its principal business address at 2485 Penny Rd, Suite 140, High Point, North Carolina | |
| 27265 ("us") and | |
| , | |
| a with its | |
| principal business address at("you") as | |
| of the date on which this Rider is executed by us (the "Effective Date"). Capitalized terms used but | |
| st Franchise Agreement | (as defined |
| not defined in this Amendment have the meanings given in the 1 | |
| below). |
RECITALS
- A. We grant franchises (each a "Franchise") to persons and entities who we determine meet our qualifications for the development and operation of distinctive spa concept offering facials, related beauty services, and related retail products under the name "Clean Your Dirty Face® " (each a "CYDF Facial Bar"). Each Franchise is granted solely pursuant to a written franchise agreement and related agreements signed by us and a franchisee (each a "Franchise Agreement").
- B. We and you are parties to that certain Franchise Agreement dated concurrently with this Rider (the "1 st Franchise Agreement"), under which we granted you the right, and you undertook the obligations to operate, a Clean Your Dirty Face® facial bar at [[insert location]/ a location to be approved by us] (your "1 st CYDF Facial Bar").
- C. Upon your request, we have agreed to grant you the right and obligation to acquire additional Franchises on the terms set forth in this Rider.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, a Rider is added to the lease agreement to protect the franchisor's interests. Several clauses within the Rider outline the relationship between the franchisor, landlord, and tenant (franchisee).
Specifically, the franchisor is a third-party beneficiary of the lease as long as they hold a collateral assignment of the lease. This gives Clean Your Dirty Face the right, but not the obligation, to enforce the lease. A default under the lease also constitutes a default under the Franchise Agreement. The landlord must also obtain written consent from Clean Your Dirty Face before terminating, modifying, or amending the lease, and must provide the franchisor with copies of any proposed or signed changes.
Clean Your Dirty Face, or its appointee, has the right to enter the premises to manage and operate the franchisee's business under certain conditions, such as abandonment or failure to cure a default. Upon expiration or termination of the lease or Franchise Agreement, Clean Your Dirty Face can enter the premises to remove any signs or materials bearing its trademarks. The landlord also consents to the collateral assignment of the lease to Clean Your Dirty Face and to the franchisor's right to assign the lease to another franchisee.