What is the consequence if a Bath Tune Up franchisee purchases from an unapproved vendor?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
additional named insured. The insurance requirements of the preceding sentence will survive so long as Franchisee uses the Vehicle in any business operating under the fictitious business names. If this Agreement is terminated, for whatever reason, Franchisee will immediately remove the name and logo of BATH TUNE-UP® and any other Marks from the Vehicle and cease any further use of that name, logo and Marks.
- (c) Partnership Vendors and Approved Vendors. Franchisee must purchase Products only from Franchisor and its Affiliates, Partnership Vendors or Approved Vendors. If Franchisee purchases from a vendor other than Franchisor, an Affiliate of Franchisor, Partnership Vendors or Approved Vendors, Franchisor has the right, at its option, in lieu of termination, to redirect Gray Area and national account leads that would otherwise be directed to Franchisee to another compliant franchisee of Franchisor's choice. In addition, Franchisee will be required to purchase from Franchisor, an Affiliate of Franchisor, Partnership Vendors or Approved Vendors samples, marketing materials, marketing services, and other items necessary to sell Bath Improvements, as well as stationery and business cards containing Franchisor's proprietary Marks. In order to protect the System and its good standing with vendors, Franchisee must pay vendors on time and notify Franchisor of any amounts payable to vendors more than 90 days past due.
- (d) Technology and Computer Systems.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, franchisees are required to purchase products only from Bath Tune Up and its affiliates, Partnership Vendors, or Approved Vendors. An Approved Vendor is defined as a vendor, other than Partnership Vendors, from whom the franchisee has written approval from Bath Tune Up to purchase products for resale.
If a Bath Tune Up franchisee purchases from a vendor other than those approved, Bath Tune Up has the right, instead of terminating the franchise agreement, to redirect Gray Area and national account leads to another compliant franchisee of Bath Tune Up's choice. Gray Area refers to an area adjoining the Territory that is not part of any other franchisee's territory, nor an area served by a Company-Owned Operation.
In addition, the franchisee will be required to purchase samples, marketing materials, marketing services, stationery, and business cards containing Bath Tune Up's proprietary marks from Bath Tune Up, its affiliates, Partnership Vendors, or Approved Vendors. This requirement ensures brand consistency and quality control across the Bath Tune Up franchise system. Franchisees are also obligated to pay vendors on time and notify Bath Tune Up of any amounts payable to vendors that are more than 90 days past due, which protects the System and its good standing with vendors.