Is Clean Your Dirty Face restricted from assigning the Franchise Agreement to a third party?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. In the event Franchisor does not execute this Agreement (regardless of the reason) Franchisor shall be deemed a third party beneficiary of this Agreement and shall have the right to enforce this Agreement directly.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
The 2025 Clean Your Dirty Face Franchise Disclosure Document's Item 22 provides information regarding contracts but does not specify any restrictions on Clean Your Dirty Face assigning the Franchise Agreement to a third party. The document includes multiple exhibits, such as the Franchise Agreement, Multi-Unit Development Rider, and other agreements, but none of the provided excerpts detail conditions under which Clean Your Dirty Face is restricted from assigning its rights or obligations under the Franchise Agreement.
However, the FDD excerpt does state that the Franchise Agreement inures to the benefit of and is binding upon the parties and their respective successors and assigns. It also states that in the event the Franchisor does not execute the agreement, the Franchisor shall be deemed a third party beneficiary of this agreement and shall have the right to enforce this agreement directly.
A prospective franchisee should carefully review the complete Franchise Agreement (Exhibit B) and related documents within the FDD to fully understand the terms and conditions related to assignment.
To gain clarity, a potential Clean Your Dirty Face franchisee should directly ask the franchisor about any limitations or required approvals regarding the assignment of the Franchise Agreement, ensuring they understand their rights and obligations in such a scenario.