For Clean Your Dirty Face, who is required to execute a guaranty in the prescribed form?

According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, or general or limited partnership (collectively, an "Entity"), any person owning an interest in the entity at any time during the Franchise Agreement's term must execute a guaranty in the form prescribed by Clean Your Dirty Face. This guaranty undertakes that the person will be personally bound, jointly and severally, by all provisions of the Franchise Agreement and any ancillary agreements between the entity and Clean Your Dirty Face. The current form of guaranty is attached to the Franchise Agreement as Exhibit D.

This requirement ensures that Clean Your Dirty Face has recourse to the personal assets of the owners of the franchisee entity, not just the entity's assets, in the event of a breach of the Franchise Agreement. This is a common practice in franchising, as it provides the franchisor with additional security and encourages the owners to actively manage and oversee the franchise operations.

Furthermore, Clean Your Dirty Face requires the franchisee to provide a complete and accurate description of all owners and their interests in the entity as of the effective date of the agreement in Exhibit A. The franchisee and its owners must also sign and deliver a revised Exhibit A to reflect any changes in ownership information. This ensures that Clean Your Dirty Face has up-to-date information on the ownership structure of the franchisee entity and can properly enforce the guaranty provisions.

Prospective Clean Your Dirty Face franchisees should carefully review the form of guaranty (Exhibit D) and understand the full extent of their personal liability under the Franchise Agreement. They should also ensure that they accurately disclose all ownership interests in Exhibit A and promptly update this information if any changes occur.