What specific actions are required to 'consummate' the transfer of a Clean Your Dirty Face franchise?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Further Assurances. The Transferor Parties and Transferee Parties each covenant and agree, at their own expense, to execute and deliver, at Franchisor's request, such further instruments and to take such other action as Franchisor may request to consummate the Transfer, the effectiveness of the New Agreement, and the other terms and conditions of this Consent.
(k) Transferor must have corrected any existing deficiencies of the CYDF Facial Bar of which Franchisor has notified Transferor, and/or the Transferee agrees to upgrade, remodel, and refurbish the CYDF Facial Bar in accordance with Franchisor's then-current requirements and specifications for CYDF Facial Bars within the time period Franchisor specifies following the Transfer Date and the Transferee agrees to escrow an amount Franchisor approves for payment of the required upgrade, remodel or refurbishment; and
(l) Transferor provides Franchisor the evidence Franchisor reasonably requests to show that appropriate measures have been taken to effect the Transfer as it relates to the operation of the CYDF Facial Bar, including, by transferring all necessary and appropriate business licenses, insurance policies, and material agreements, or obtaining new business licenses, insurance policies and material agreements.
Source: Item 23 — RECEIPTS (FDD pages 54–186)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, several actions are required by both the transferor (current franchisee) and the transferee (new franchisee) to 'consummate' the transfer of a franchise. The transferor and transferee must agree to execute and deliver any further instruments and take any other actions requested by Clean Your Dirty Face to finalize the transfer, ensure the New Agreement is effective, and fulfill all conditions of the consent.
Specifically, the transferor must correct any existing deficiencies at the CYDF Facial Bar that Clean Your Dirty Face has pointed out. If deficiencies cannot be corrected, the transferee must agree to upgrade, remodel, and refurbish the CYDF Facial Bar according to Clean Your Dirty Face's current standards within a timeframe specified by the franchisor. In this case, the transferee must also set aside an amount approved by Clean Your Dirty Face in an escrow account to cover the costs of the required upgrades, remodeling, or refurbishment.
Furthermore, the transferor is responsible for providing Clean Your Dirty Face with evidence that appropriate measures have been taken to effect the transfer concerning the CYDF Facial Bar's operation. This includes transferring all necessary business licenses, insurance policies, and material agreements, or obtaining new ones as needed. These measures ensure that the Clean Your Dirty Face franchise maintains its operational standards and legal compliance throughout the transfer process.