What conditions must be met for Bath Tune Up to approve a franchise transfer?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN AGREEMENT | SUMMARY |
|---|---|---|
| j. Assignment of contracts by franchisor | 9.1 | We may assign the franchise agreement if we determine the transferee is financially capable of performing our obligations and if the transferee agrees to assume such obligations. |
| k. “Transfer” by | 1.20, 9.2 | Includes transfer of contract or assets or any ownership |
| franchisee – definition | change. | |
| l. Franchisor approval of | 9.2(b) | We have the right to approve all transfers. |
| transfer | ||
| m. Conditions for franchisor approval of transfer | 9.2(b)(i)-(vii) | New franchisee qualifies, initial franchise fee paid, transfer fee paid, purchase agreement approved, training arranged, release signed by you, all money due and owing to us paid by you, and current agreement signed by new franchisee. (Also see r. below.) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–41)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the company maintains the right to approve all franchise transfers. For Bath Tune Up to grant approval for a transfer, several conditions must be met.
First, the prospective new franchisee must meet Bath Tune Up's qualification standards. The initial franchise fee must be paid by the new franchisee. Additionally, the transferor (the current franchisee) must pay all outstanding debts owed to Bath Tune Up.
Furthermore, a purchase agreement acceptable to Bath Tune Up must be in place, and arrangements must be made for the new franchisee to complete the required training program. Both the transferring franchisee and the new franchisee must sign the current franchise agreement, and the transferring franchisee must sign a release as part of the transfer process.