Under what circumstances does Clean Your Dirty Face have the option to purchase my business?
Clean_Your_Dirty_Face Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the option to purchase your Business and the Premises (if you or one of your affiliates owns the Premises) upon the occurrence of a Termination Event (as defined below). We may exercise this option by giving you written notice within thirty (30) days after the date of the Termination Event. We have the unrestricted right to assign this option to purchase. If we purchase your Business and/or the Premises, we are entitled to all customary warranties and representations in our asset purchase, including representations and warranties as to ownership and condition of and title to assets; liens and encumbrances on assets; validity of contracts and agreements; and liabilities affecting the assets, contingent or otherwise.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to Clean Your Dirty Face's 2025 Franchise Disclosure Document, Clean Your Dirty Face has the option to purchase your business and the premises (if you or an affiliate owns the premises) if a Termination Event occurs. Clean Your Dirty Face can exercise this option by providing written notice within 30 days of the Termination Event. Clean Your Dirty Face also has the unrestricted right to assign this purchase option to another party.
If Clean Your Dirty Face purchases the business and/or premises, they are entitled to customary warranties and representations in the asset purchase agreement. This includes assurances regarding ownership, condition, title to assets, liens, encumbrances, validity of contracts, and liabilities affecting the assets.
This clause is important for prospective franchisees as it outlines the circumstances under which Clean Your Dirty Face can take over the business. Understanding what constitutes a Termination Event is crucial, as it directly impacts the franchisee's control and investment in the Clean Your Dirty Face franchise. Franchisees should seek legal counsel to fully understand the implications of this clause and negotiate terms that protect their interests.