What is the basis for Bath Tune Up entering into the franchise agreement with the franchisee?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
RECITALS
- A. Franchisor is engaged in the administration and development of programs for a business ("Franchised Business") for the sale and installation of Bath Improvements using our expertise ("System") and BATH TUNE-UP® marks ("Marks"), as defined below, as well as other proprietary information owned by, and identified with, Franchisor. Franchisor is the owner of the Marks, the System, and all rights in respect of each of them. Franchisor's activities in general, and its franchise program in particular, are undertaken to develop, maintain, and enhance the Marks and Franchisor's overall reputation in retail sales and related services relating to home improvement and wood treatment services.
- B. Franchisee wishes to be franchised by the Franchisor to use the System, the Marks, and the goodwill of Franchisor to conduct the Franchised Business. Franchisor is willing to grant to Franchisee a franchise for the System and the Marks, in accordance with the provisions of this Agreement and the Manuals, as amended from time to time, on the terms and conditions set forth below.
- C. Franchisee acknowledges that, in the administration of this Agreement and in taking actions with respect to its relationship with Franchisee, Franchisor must take into account the needs of all people operating under the Marks, the effect upon those people as a whole, and the need to protect the Marks for the benefit of those people and Franchisor.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to the 2025 Bath Tune Up Franchise Disclosure Document, the franchise agreement is based on Bath Tune Up's administration and development of a business program for the sale and installation of bath improvements, utilizing their expertise, system, and trademarks. Bath Tune Up owns the marks, the system, and all associated rights, with activities aimed at maintaining and enhancing the marks and the company's reputation in retail sales and home improvement services.
The agreement is also based on the franchisee's desire to be franchised by Bath Tune Up to use the system, marks, and goodwill to operate the franchised business. Bath Tune Up is willing to grant the franchise in accordance with the provisions of the agreement and manuals, as amended, based on the terms and conditions outlined.
Furthermore, the agreement acknowledges that Bath Tune Up must consider the needs of all operators under the marks, the overall effect on them, and the need to protect the marks for the benefit of both the operators and Bath Tune Up itself when administering the agreement and taking actions related to the relationship with the franchisee. This indicates a mutual interest in maintaining brand standards and protecting the overall network.