Can Bath Tune Up consider the reputation and character of the prospective transferees when evaluating a transfer?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor believes that the terms and conditions of any Transfer would not be in the best interests of the Franchisor, the proposed transferee or the BATH TUNE-UP® System, Franchisor may refuse to consent to such Transfer.
Without limitation, Franchisor may consider the effect that the Transfer and the prospective transferees will have or may reasonably be expected to have on the reputation or business operations of the Franchised Business, the Marks, or Franchisor, or any of Franchisor's Affiliates.
Additionally, it will not be unreasonable for Franchisor to impose, among other things, the following conditions precedent to its consent to any Transfer:
(i) The proposed assignee of the interest to be subjected to the Transfer will complete Franchisor's application for a franchise agreement, and Franchisee and the proposed assignee will fully disclose in writing all of the terms and conditions of the proposed Transfer.
(ii) The proposed assignee(s) of the interest to be subjected to the Transfer demonstrate(s) that it has or they have the skills, qualifications, and economic resources necessary, in Franchisor's reasonable judgment, to conduct the business contemplated by this Agreement.
Among other things, this may require the possession of certain skills and qualifications of the prospective transferee, including experience in or ability to learn the bathroom improvement business, financial and operational skills and qualifications, economic resources, reputation and character of the prospective transferees, and the ability of the prospective transferee(s) to fully and faithfully conduct the Franchised Business as contemplated by this Agreement.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, when a franchisee seeks to transfer their interest in the franchise, Bath Tune Up has the right to withhold or place conditions on its consent based on the circumstances of the transfer. Bath Tune Up may refuse to consent to a transfer if it believes the terms and conditions would not be in the best interests of the franchisor, the proposed transferee, or the Bath Tune Up system.
Specifically, Bath Tune Up may consider the effect that the transfer and the prospective transferees will have on the reputation or business operations of the franchised business, the Bath Tune Up marks, or the franchisor. As part of the transfer application, the proposed assignee must complete Bath Tune Up's franchise application, and both the franchisee and assignee must fully disclose all terms and conditions of the proposed transfer in writing.
Furthermore, the proposed assignee must demonstrate that they possess the necessary skills, qualifications, and economic resources to conduct the business. This includes experience in or the ability to learn the bathroom improvement business, financial and operational skills, economic resources, and the reputation and character of the prospective transferees. The prospective transferee(s) must also demonstrate the ability to fully and faithfully conduct the franchised business as outlined in the agreement.