What is the transfer fee required to transfer a Clean Your Dirty Face franchise?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
You should read these provisions in the agreements attached to this Disclosure Document.**
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY | |---|---|---| | (a) Length of the | Section 1.C | Term of the Franchise Agreement is 5 years. | | franchise term | | | | (b) Renewal or | Section 13.A | 1 successor franchise terms of 5 years, if you meet certain | | extension of the term | | requirements. |
| PROVISION | SECTION IN FRANCHISE AGREEMENT |
|---|---|
| SUMMARY | |
| (m) Conditions for | Section 12.C Under Franchise Agreement, the following qualifications must |
| franchisor approval of | |
| transfer | be met: all monetary obligations are paid; you are not in default of any provisions of the Franchise Agreement, your lease of the Business premises or any other agreement with us; new franchise owner (and its owners and affiliates) are not in a Competitive Business (as defined below); completion of Training Program; lease permitted to be transferred; you or transferee signs our then-current Franchise Agreement and other documents, provisions of which may differ materially from those contained in the Franchise Agreement; you pay transfer fee of $25,000; you (and your owners) sign a general release and guaranty; we determine that the financial terms of the transfer will not burden your CYDF Facial Bar or jeopardize our rights; you subordinate amounts due to you; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–49)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, a franchisee who wishes to transfer their franchise must pay a transfer fee of $25,000. This fee is one of several conditions that must be met to gain franchisor approval for the transfer.
Other conditions include ensuring all monetary obligations to Clean Your Dirty Face are paid, and the franchisee is not in default of any agreements. The new franchise owner must not be involved in a competitive business and must complete the required training program. Additionally, the lease for the business premises must be transferable, and both the current and new franchisee must sign the then-current Franchise Agreement, which may have materially different terms than the original agreement.
Additional requirements include the franchisee and their owners signing a general release and guaranty, and Clean Your Dirty Face must determine that the financial terms of the transfer will not negatively impact the CYDF Facial Bar or jeopardize Clean Your Dirty Face's rights. The franchisee must also subordinate any amounts due to them, correct any deficiencies in the CYDF Facial Bar, and comply with non-compete obligations. The transferee may also be required to upgrade, remodel, or refurbish the CYDF Facial Bar, potentially requiring them to escrow an amount approved by Clean Your Dirty Face for these improvements.
Clean Your Dirty Face also retains a right of first refusal, allowing them to match any offer made for the franchise within 30 days. This comprehensive set of conditions and the significant transfer fee highlight the importance Clean Your Dirty Face places on maintaining brand standards and ensuring the financial stability of its franchisees during a transfer.