factual

In the Bath Tune Up addendum, what is the defined term for the geographic area granted to the franchisee?

Bath_Tune_Up Franchise · 2025 FDD

Answer from 2025 FDD Document

The term "Franchised Business" means the sale to customers located in the Territory of Bath Improvements, in accordance with the System and using the goodwill associated with the Marks, all upon the terms and conditions stated in this Agreement. For purposes of this Agreement, a customer is located in the Territory if the location where the Franchised Business's services will be performed is located in the Territory.

Source: Item 22 — CONTRACTS (FDD page 52)

What This Means (2025 FDD)

According to Bath Tune Up's 2025 Franchise Disclosure Document, the geographic area granted to the franchisee is referred to as the "Territory".

Bath Tune Up grants franchisees the right to operate within a defined Territory. According to the FDD, a customer is considered to be located in the franchisee's Territory if the location where the Bath Tune Up services will be performed is within that Territory. This definition is important for determining which franchisee is entitled to revenue from a particular job.

Furthermore, the FDD specifies that Bath Tune Up will not establish or franchise any other Bath Improvements business using the System and Marks within the franchisee's Territory during the term of the agreement, with some exceptions. These exceptions include agreements with Key Accounts, which may involve performance in multiple territories, and opportunities for joint marketing efforts with other franchisees. Franchisees should be aware of these potential overlaps and limitations to their exclusive rights within their Territory.

Additionally, franchisees are responsible for ensuring that they do not make sales in other franchisees' territories and must refer customers to the appropriate franchisee if they are located in another franchisee's contracted territory. This is to protect the goodwill of the Bath Tune Up brand and the Marks. Franchisees are not compensated for these referrals, highlighting the importance of respecting territorial boundaries within the Bath Tune Up franchise system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.