Is the transferee required to sign a new franchise agreement with Clean Your Dirty Face?

According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, a transferee may be required to sign a new franchise agreement. Specifically, if you transfer your franchise agreement, the transferee must sign Clean Your Dirty Face's then-current form of franchise agreement and related documents. Alternatively, if you transfer a controlling ownership interest in your business, you (the original franchisee) must sign the then-current franchise agreement.

Clean Your Dirty Face stipulates that the provisions in the new franchise agreement may differ significantly from the original agreement, including potential changes to the royalty and marketing fund contribution. However, the term of the new franchise agreement will equal the remainder of the original agreement's term.

In addition to signing a new franchise agreement, Clean Your Dirty Face requires several other conditions to be met for a transfer to be approved. These include ensuring the transferee has sufficient business experience and financial resources, settling all outstanding payments to Clean Your Dirty Face, and confirming that neither the transferee nor its affiliates have an interest in a competitive business. The transferee (or its Operating Partner) must also complete Clean Your Dirty Face's training program. Furthermore, the franchisee must pay a transfer fee of $25,000 and provide all requested information about the transfer and transferee. Finally, the franchisee must obtain landlord permission to transfer the lease and sign a general release of claims against Clean Your Dirty Face.