Does Bath Tune Up compensate the franchisee for the data collected?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
To ensure no sales are made in the territories of other franchisees and to avoid misunderstandings when customers are quoted a price for Products that are different than the prices of other franchisees, Franchisee must as a preliminary matter first determine if the customer is from another franchisee's contracted territory. If so, Franchisee must refer the customer to the franchisee in whose territory the customer is located and provide such franchisee's name and contact information and must not quote any prices, sales terms or other information to the customer. Franchisee will not be compensated for these referrals but will provide them as a means to protect the goodwill of the BATH TUNE-UP® brand and the Marks.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees will not receive compensation for customer referrals to other franchisees' territories. Specifically, if a customer contacts a franchisee but is located in another franchisee's territory, the franchisee must refer the customer to the correct franchisee.
This policy is in place to prevent sales in other franchisees' territories and avoid customer misunderstandings about product pricing. Bath Tune Up requires franchisees to provide these referrals to protect the brand's goodwill.
Therefore, a Bath Tune Up franchisee is obligated to pass on potential customers from outside their territory without direct compensation, which could impact their potential revenue. This arrangement is designed to foster a collaborative network and protect individual territories, but franchisees should be aware that they will not be directly rewarded for these referrals.