What amount of cash did Bath Tune Up have restricted as of December 31, 2022?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
t findings, and certain internal control-related matters that we identified during the audit.
February 8, 2023
Financial Statements
Balance Sheet
| December 31, | 2022 | |------------------------------------------------------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 51–52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, as of December 31, 2022, the company had $395,843 in restricted cash. This restricted cash is part of the company's total cash assets, which amounted to $1,662,336 as of that date.
The restricted cash primarily consists of advertising advances and deposits from franchisees designated for national and regional advertising. These funds, referred to as NAF (National Advertising Fund), are specifically earmarked for advertising costs that benefit the franchisees.
These funds cannot be used for Bath Tune Up's own advertising expenses related to franchise sales. This arrangement ensures that the advertising fees contributed by franchisees are used exclusively to promote the Bath Tune Up brand and support the franchisees' marketing efforts, rather than being used for the company's franchise development activities.