What conditions must be met for Bath Tune Up to approve a transfer of the franchise?
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 retains the right to approve all franchise transfers. For Bath Tune Up to grant approval, several conditions must be met by the prospective new franchisee.
First, the new franchisee must meet Bath Tune Up's qualifications. The transferring franchisee must pay all outstanding money owed to Bath Tune Up. Additionally, the new franchisee must sign the current franchise agreement.
Other conditions include paying the initial franchise fee and a transfer fee, securing approval of the purchase agreement, arranging for the new franchisee's training, and obtaining a release from the transferring franchisee. Meeting these stipulations is crucial for a smooth and franchisor-approved transfer of a Bath Tune Up franchise.