What is the role of the 'New Agreement' in the context of a Clean Your Dirty Face franchise transfer?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
ng any assignment of the lease of the premises of the CYDF Facial Bar or subleasing of the premises of the CYDF Facial Bar) requires notice to or approval from Transferor's landlord, or any other action under the terms of the lease for the CYDF Facial Bar, Transferor has taken such appropriate action and delivered Franchisor evidence of the same;
- (g) Transferee must sign Franchisor's then-current form of franchise agreement and related documents, including execution of a guaranty of all obligations thereunder by the Transferee Guarantors (together, the "New Agreement"), any and all of the provisions of which may differ materially from any and all of those in the Original Agreement; provided, the term of the New Agreement will be the remaining term of the Original Agreement;
- (h) Transferee and its required personnelsatisfactorily complete Franchisor's thencurrent training program as required under the New Agreement;
- (i) Transferor must pay Franchisor a transfer fee equal to $25,000;
Source: Item 23 — RECEIPTS (FDD pages 54–186)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, the 'New Agreement' is a critical component of the franchise transfer process. Specifically, the franchisee (referred to as the Transferee) must sign Clean Your Dirty Face's current franchise agreement form to complete the transfer. This new agreement and related documents must also be guaranteed by the Transferee Guarantors.
It is important to note that the terms in this 'New Agreement' may differ significantly from those in the original franchise agreement. However, the term of the New Agreement will be for the remaining term of the Original Agreement. Additionally, the Transferee and their personnel must satisfactorily complete Clean Your Dirty Face's current training program as required under the New Agreement.
Clean Your Dirty Face's consent to the transfer is conditional, requiring that the Transferee not violate any terms of the New Agreement. The Transferor Parties and Transferee Parties must also ensure all representations and warranties are correct as of the transfer date and must not have violated any provisions of the New Agreement or any other agreements with Clean Your Dirty Face, its affiliates, suppliers, or the CYDF Facial Bar's landlord.