Who is responsible for all obligations under the Lease for a Clean Your Dirty Face franchise?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord acknowledges that Tenant intends to operate a CYDF Facial Bar (a "Business") in the Premises, and that Tenant's rights to operate a Business and to use the CYDF name, trademarks and service marks (the "Marks") are solely pursuant to a franchise agreement ("Franchise Agreement") between Tenant and Mud Franchising, LLC ("Franchisor"). Tenant's operations at the Premises are independently owned and operated. Landlord acknowledges that Tenant alone is responsible for all obligations under the Lease unless and until Franchisor or another franchise expressly, and in writing, assumes such obligations and takes actual possession of the Premises. Notwithstanding any provisions of this Lease to the contrary, Landlord hereby consents, without payment of a fee and without the need for further Landlord consent, to (i) the collateral assignment of Tenant's interest in this Lease to Franchisor to secure Tenant's obligations to Franchisor under the Franchise Agreement, and/or (ii) Franchisor's succeeding to Tenant's interest in the Lease as a result of Franchisor's exercise of rights or remedies under such collateral assignment or as a result of Franchisor's termination of, or exercise of rights or remedies granted in or under, any other agreement between Franchisor and Tenant, and/or (iii) Tenant's, Franchisor's and/or any other franchisee of Franchisor's assignment of the Lease to another franchisee of Franchisor with whom Franchisor has executed its then-standard franchise agreement. Landlord, Tenant and Franchisor agree and acknowledge that simultaneously with such assignment pursuant to the immediately preceding sentence, Franchisor shall be released from all liability under the Lease or otherwise accruing after the date of such assignment (in the event Franchisor is acting as the assignor under such assignment), but neither Tenant nor any other franchisee shall be afforded such release in the event Tenant/such franchisee is the assignor unless otherwise agreed by Landlord.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Clean Your Dirty Face Franchise Disclosure Document, the franchisee (Tenant) is responsible for all obligations under the lease for the premises where the CYDF Facial Bar is located. However, there are circumstances where Mud Franchising, LLC (Franchisor) may assume these obligations.
Specifically, the landlord acknowledges that the tenant's rights to operate the Clean Your Dirty Face business are pursuant to a franchise agreement with Mud Franchising, LLC. The landlord also acknowledges that the tenant is independently responsible for all lease obligations until the franchisor expressly assumes these obligations in writing and takes possession of the premises.
Furthermore, the landlord consents to the collateral assignment of the tenant's lease interest to the franchisor to secure the tenant's obligations under the Franchise Agreement. The landlord also consents to the franchisor succeeding to the tenant's lease interest if the franchisor exercises its rights or remedies under the collateral assignment or terminates any agreement with the tenant. Additionally, the landlord agrees to the assignment of the lease to another Clean Your Dirty Face franchisee. However, upon such assignment, the franchisor is released from liability under the lease, while the original tenant is not, unless otherwise agreed by the landlord.