What was the cash and restricted cash balance for Bath Tune Up at the end of the year 2022?

According to Bath Tune Up's 2025 Franchise Disclosure Document, the cash and restricted cash balance at the end of 2022 was $1,662,336. Of this amount, $395,843 was held as restricted cash. This information is derived from the balance sheets presented in the financial statements. These statements were audited by an independent auditor, BDO, indicating that they fairly represent the financial position of Bath Tune Up as of December 31, 2022.

The restricted cash is specifically designated for advertising advances and deposits from franchisees, intended for national and regional advertising initiatives. These funds are earmarked to cover advertising costs that directly benefit the franchisees and cannot be used for Bath Tune Up's own advertising expenses related to franchise sales. This segregation of funds ensures that franchisee contributions are used as intended, promoting transparency and trust within the franchise system.

For a prospective Bath Tune Up franchisee, this information provides insight into the company's financial health and the management of advertising funds. The presence of restricted cash indicates a commitment to using franchisee contributions for their intended purpose. The overall cash balance reflects the company's liquidity and ability to meet its short-term obligations. Reviewing these figures in the context of the full financial statements, including the statements of earnings and cash flows, can offer a more comprehensive understanding of Bath Tune Up's financial performance and stability.