Who must sign a general release of claims against Clean Your Dirty Face during a transfer?

According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, during a transfer of the franchise, both the franchisee and their owners are required to sign a general release of claims. This release must be in a form that is satisfactory to Clean Your Dirty Face. By signing this release, the franchisee and their owners relinquish any and all claims against Clean Your Dirty Face, its shareholders, officers, directors, employees, and agents.

This requirement is a condition that must be met before or concurrently with the effective date of the transfer. This means that the transfer cannot be completed until Clean Your Dirty Face receives the signed release. This provision protects Clean Your Dirty Face from potential legal action by the franchisee or their owners after the transfer has been completed.

For a prospective Clean Your Dirty Face franchisee, this means that if they decide to sell their franchise, they and their owners will need to sign a release that gives up any potential claims against Clean Your Dirty Face. Franchisees should carefully consider this requirement and consult with an attorney before signing any documents related to the transfer of their franchise. Franchisees should also obtain a copy of the 'Sample General Release' listed in Exhibit H to fully understand the scope of what they are signing away.